Economic Update

Both the recent reporting season in Australia and the latest figures coming from the United States, Europe and Asia demonstrate the same thing – recovery is definitely happening. It’s just not happening as quickly as predicated.

Signs are certainly there that the Australian economy and household balance sheets are in good condition. Consumer confidence surged in August; it rose 16.5 per cent in two months and now sits well above the long-term average. Consumer spending has also been stronger than expected.