Powered by MOMENTUM MEDIA
subscribe to our newsletter
‘Turnbull effect’ wearing off but sentiment still strong

‘Turnbull effect’ wearing off but sentiment still strong

An Australian chief economist believes recent data could indicate that business conditions are being driven by more than a change in leadership.

BetaShares Chief Economist David Bassanese pointed to NAB’s monthly business survey, which showed a slight lift in business confidence in November.

“We've had encouraging news of a further modest lift in business confidence in the NAB monthly business survey, even though the so called ‘Turnbull effect’ is beginning to wear off, according to political polling”, Mr Bassanese said.

Advertisement
Advertisement

According to the economist, the recent data suggests there may be important underlying economic drivers supporting business conditions, most notably the strength in home building, lower oil prices and weakness in the Australian dollar.

“In this light it would not surprise to see a rebound in the Westpac measure of consumer confidence given the drop in petrol prices and the unemployment rate over the past month,” Mr Bassanese said.

“Given the ongoing strength in labour hiring indicators, much of the lift in employment last month should also be retained in Thursday's employment report, though the unemployment rate could nudge back to six per cent.

“All up, this week’s data is likely to confirm the RBA's decision to leave interest rates on hold in November and December notwithstanding the decision by major banks to unilaterally raise their mortgage rates."

‘Turnbull effect’ wearing off but sentiment still strong
mortgagebusiness

 

Latest News

The major bank’s net interest margin has been strengthened by its out-of-cycle mortgage rate hikes, contributing to quarterly cash earning...

ASIC’s decision to undertake a review and consider changes to responsible lending guidelines will be “credit positive” for the mortgag...

The banking royal commission has not spurred a deterioration in satisfaction among customers of Australian banks operating in New Zealand, a...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The current mindset of the mortgage industry

Is enough being done to ensure responsible lending?