Financial Conditions Deteriorate in WA.
Mar 19th 2010, 5:59 am
#1
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Financial Conditions Deteriorate in WA.
WA households are 17.7% worse off this quarter mainly due to household debt, so a few little rate rises has put people under financial pressure. With more expected rate rises in the pipeline it's going to end in tears for many people who have over extended themselves.
http://au.news.yahoo.com/thewest/bus...wa-households/
Financial conditions deteriorate for WA householdsAAP
March 19, 2010, 8:22 am
WA households suffered a bigger deterioration in their financial situation than households in any other state in the March quarter, a report has revealed.
The Melbourne Institute bulletin of economic trends showed household financial conditions fell across most states, with WA suffering the biggest fall at minus 17.7 per cent.
Victorians were next worse off following a 6.9 per cent fall in conditions.
Queensland fell 6.7 per cent and NSW was down 1.9 per cent.
The conditions of South Australian's improved by 7.8 per cent.
The report showed the Australian economy was set to grow further in 2010, but household financial conditions were deteriorating to the extent the nation could experience a W-shaped economic recovery.
Nationally the domestic economy is set to grow by 0.8 per cent in the March quarter and by 0.6 per cent in the June, September and December quarters.
But the report's household financial conditions index fell 16.6 per cent to 28.8 index points in the March quarter of 2010.
It was the first fall in the index after four consecutive quarters of improvement.
More than half of the 14.4 per cent households who consider themselves to be financially stressed, are employed while employed people with a household income of over $80,000 are the most financially stressed out of all income groups.
The report said part of the deterioration in financial conditions was due to the increased need to service household debt, in particular mortgage debt.
"The Reserve Bank is now in a difficult position," The Melbourne Institute's Dr Ada Claus said in a statement.
"Rises in house prices and associated rises in consumer debt seem to warrant a swift tightening in monetary policy but if the tightening is too fast it may choke-off business investment that is only now starting to recover."
"This means that if the RBA gets policy wrong, Australia may experience a W-shaped recovery."
March 19, 2010, 8:22 am
WA households suffered a bigger deterioration in their financial situation than households in any other state in the March quarter, a report has revealed.
The Melbourne Institute bulletin of economic trends showed household financial conditions fell across most states, with WA suffering the biggest fall at minus 17.7 per cent.
Victorians were next worse off following a 6.9 per cent fall in conditions.
Queensland fell 6.7 per cent and NSW was down 1.9 per cent.
The conditions of South Australian's improved by 7.8 per cent.
The report showed the Australian economy was set to grow further in 2010, but household financial conditions were deteriorating to the extent the nation could experience a W-shaped economic recovery.
Nationally the domestic economy is set to grow by 0.8 per cent in the March quarter and by 0.6 per cent in the June, September and December quarters.
But the report's household financial conditions index fell 16.6 per cent to 28.8 index points in the March quarter of 2010.
It was the first fall in the index after four consecutive quarters of improvement.
More than half of the 14.4 per cent households who consider themselves to be financially stressed, are employed while employed people with a household income of over $80,000 are the most financially stressed out of all income groups.
The report said part of the deterioration in financial conditions was due to the increased need to service household debt, in particular mortgage debt.
"The Reserve Bank is now in a difficult position," The Melbourne Institute's Dr Ada Claus said in a statement.
"Rises in house prices and associated rises in consumer debt seem to warrant a swift tightening in monetary policy but if the tightening is too fast it may choke-off business investment that is only now starting to recover."
"This means that if the RBA gets policy wrong, Australia may experience a W-shaped recovery."
Mar 19th 2010, 6:23 am
#2
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Re: Financial Conditions Deteriorate in WA.
Popcorn anyone?
Mar 19th 2010, 6:43 am
#3
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Re: Financial Conditions Deteriorate in WA.
Its very small part of what they are forecasting
WA equal highest economic activity
WA lowest unemployment
http://www.melbourneinstitute.com/su...MBET_Feb10.pdf
By the way these are forecasts (March quarter -should include 3 consecutive months )
WA equal highest economic activity
WA lowest unemployment
http://www.melbourneinstitute.com/su...MBET_Feb10.pdf
By the way these are forecasts (March quarter -should include 3 consecutive months )
Mar 19th 2010, 6:54 am
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Mar 19th 2010, 9:42 am
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Re: Financial Conditions Deteriorate in WA.
[QUOTE=pomtastic;8431473]WA households are 17.7% worse off this quarter mainly due to household debt, so a few little rate rises has put people under financial pressure. With more expected rate rises in the pipeline it's going to end in tears for many people who have over extended themselves.
And? Your point? Or is it just another smug post?
And? Your point? Or is it just another smug post?
Mar 19th 2010, 9:44 am
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Re: Financial Conditions Deteriorate in WA.
I hope I become one of the 82%
Mar 19th 2010, 10:07 am
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Re: Financial Conditions Deteriorate in WA.
employed people with a household income of over $80,000 are the most financially stressed out of all income groups.
