[HSC] Economist: 8–14 July
The week in review.
This week’s business and consumer confidence readings highlighted the severe degree of uncertainty that prevails in the current Australian economy.
1. Business and Consumer Confidence
Both business and consumer confidence took a dive this week, with consumers as pessimistic as they’ve been in almost two years, whilst business confidence fell by five points to two, well below the long-run average of six — this despite an improvement in short-term business conditions.
Consumers’ expectations of the economy’s twelve-month prospects fell to a four-year low and expectations about where the economy will be in 2024 fell by 6.7% since the previous survey. Another worry for consumers is the unemployment rate, with expectations of an increase in the jobless rate rising by 5.8% compared to a month prior. This concern is supported by the latest job vacancy figures, which have been declining since the turn of the year.
HSC Relevance
- Weak business and consumer confidence readings are symbolic of the growing uncertainty that exists in the Australian economy. This uncertainty will likely weigh on consumption and investment, limiting aggregate demand and short-term economic growth.
2. Elsewhere around the Globe
- China’s trade surplus widened to almost $51 billion in June, after imports fell by 7.3%.
- China’s headline inflation rate remained at 2.7% in June. Meanwhile, in the United States, headline inflation fell to 1.6%, whilst underlying inflation came in slightly higher at 2.1%
Further Reading
This series of weekly articles aims to compile the important economic news of the week into bite-sized summaries with HSC-specific takeaways.
You can expect a new article every Sunday at 6pm!
