Latest news with #RobertEwing
Perth Now
10-07-2025
- Business
- Perth Now
Fresh warning bell for Aussie economy
Business revenues declined in May for the first time since late 2024 in a fresh warning bell for Australia's stumbling economy. The Australian Bureau of Statistics revealed the dip in its latest data release on business turnover, which covers total income generated from sales before taking out expenses. A slump in arts and recreation services propelled the decline, with the category tumbling 5.5 per cent over the month. Manufacturing declined 1.3 per cent and retail slipped 0.8 per cent. Altogether, turnover in five of 13 industries fell. 'This is the first fall in monthly business turnover since October 2024,' ABS head of business statistics Robert Ewing said. 'Softening the fall, we saw rises in electricity, gas, water and waste services, up 1.7 per cent, and wholesale trade, up 1.1 per cent.' IG market analyst Tony Sycamore said May's numbers suggested Australia's economy had entered a 'flat patch'. 'It supports other data that indicates the economy remains in a flat patch, with the softness in retail sales confirming the idea that households remain cautious,' he said. Business turnover declined across May 2025. NewsWire / Nikki Short Credit: News Corp Australia 'This reinforces the need for additional monetary policy easing from the RBA (Reserve Bank of Australia) to boost sentiment and growth prospects for the Australian economy into the end of 2025.' Compared with May 2024, however, overall turnover was 3.3 per cent higher for the month, the ABS said. May's dip follows a shock decision from the RBA on Tuesday to hold the cash rate at 3.85 per cent, defying expectations from expert commentators and the money markets. RBA governor Michele Bullock wanted to wait for the June quarter inflation numbers – scheduled for release on July 20 – before moving on rates. 'We just want to confirm with a full quarterly CPI that we're still on track to deliver inflation continuing down to the middle of the band over time,' she said in response to a question from NewsWire. 'That's the reason we're waiting. We decided to hold and we'll reconsider again in August with this extra information and new forecasts.' bRight Agent co-founder Aaron Scott called the hold a 'cruel blow' for millions of Australian homeowners. 'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said on Tuesday. 'Nobody will be breaking out the Wagyu beef or shiraz.' On Thursday, banking giant Commonwealth Bank also warned that households remained cautious. 'While we still anticipate a pick-up in household spending in 2025, a slower rate-cutting cycle could soften this recovery over the remainder of the year,' CBA senior economist Belinda Allen said. Consumer spending lifted 0.3 per cent in June, the bank's closely watched household spending index revealed, for a third month of gains following rises of 0.4 per cent in both April and May.
News.com.au
10-07-2025
- Business
- News.com.au
Business turnover slips 0.1 per cent in May 2025: ABS
Business revenues declined in May for the first time since late 2024 in a fresh warning bell for Australia's stumbling economy. The Australian Bureau of Statistics revealed the dip in its latest data release on business turnover, which covers total income generated from sales before taking out expenses. A slump in arts and recreation services propelled the decline, with the category tumbling 5.5 per cent over the month. Manufacturing declined 1.3 per cent and retail slipped 0.8 per cent. Altogether, turnover in five of 13 industries fell. 'This is the first fall in monthly business turnover since October 2024,' ABS head of business statistics Robert Ewing said. 'Softening the fall, we saw rises in electricity, gas, water and waste services, up 1.7 per cent, and wholesale trade, up 1.1 per cent.' IG market analyst Tony Sycamore said May's numbers suggested Australia's economy had entered a 'flat patch'. 'It supports other data that indicates the economy remains in a flat patch, with the softness in retail sales confirming the idea that households remain cautious,' he said. 'This reinforces the need for additional monetary policy easing from the RBA (Reserve Bank of Australia) to boost sentiment and growth prospects for the Australian economy into the end of 2025.' Compared with May 2024, however, overall turnover was 3.3 per cent higher for the month, the ABS said. May's dip follows a shock decision from the RBA on Tuesday to hold the cash rate at 3.85 per cent, defying expectations from expert commentators and the money markets. RBA governor Michele Bullock wanted to wait for the June quarter inflation numbers – scheduled for release on July 20 – before moving on rates. 'We just want to confirm with a full quarterly CPI that we're still on track to deliver inflation continuing down to the middle of the band over time,' she said in response to a question from NewsWire. 'That's the reason we're waiting. We decided to hold and we'll reconsider again in August with this extra information and new forecasts.' bRight Agent co-founder Aaron Scott called the hold a 'cruel blow' for millions of Australian homeowners. 'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said on Tuesday. 'Nobody will be breaking out the Wagyu beef or shiraz.' On Thursday, banking giant Commonwealth Bank also warned that households remained cautious. 'While we still anticipate a pick-up in household spending in 2025, a slower rate-cutting cycle could soften this recovery over the remainder of the year,' CBA senior economist Belinda Allen said. Consumer spending lifted 0.3 per cent in June, the bank's closely watched household spending index revealed, for a third month of gains following rises of 0.4 per cent in both April and May.
West Australian
10-07-2025
- Business
- West Australian
Business turnover slips 0.1 per cent in May 2025: ABS
Business revenues declined in May for the first time since late 2024 in a fresh warning bell for Australia's stumbling economy. The Australian Bureau of Statistics revealed the dip in its latest data release on business turnover, which covers total income generated from sales before taking out expenses. A slump in arts and recreation services propelled the decline, with the category tumbling 5.5 per cent over the month. Manufacturing declined 1.3 per cent and retail slipped 0.8 per cent. Altogether, turnover in five of 13 industries fell. 'This is the first fall in monthly business turnover since October 2024,' ABS head of business statistics Robert Ewing said. 'Softening the fall, we saw rises in electricity, gas, water and waste services, up 1.7 per cent, and wholesale trade, up 1.1 per cent.' IG market analyst Tony Sycamore said May's numbers suggested Australia's economy had entered a 'flat patch'. 'It supports other data that indicates the economy remains in a flat patch, with the softness in retail sales confirming the idea that households remain cautious,' he said. 'This reinforces the need for additional monetary policy easing from the RBA (Reserve Bank of Australia) to boost sentiment and growth prospects for the Australian economy into the end of 2025.' Compared with May 2024, however, overall turnover was 3.3 per cent higher for the month, the ABS said. May's dip follows a shock decision from the RBA on Tuesday to hold the cash rate at 3.85 per cent, defying expectations from expert commentators and the money markets. RBA governor Michele Bullock wanted to wait for the June quarter inflation numbers – scheduled for release on July 20 – before moving on rates. 'We just want to confirm with a full quarterly CPI that we're still on track to deliver inflation continuing down to the middle of the band over time,' she said in response to a question from NewsWire. 'That's the reason we're waiting. We decided to hold and we'll reconsider again in August with this extra information and new forecasts.' bRight Agent co-founder Aaron Scott called the hold a 'cruel blow' for millions of Australian homeowners. 'Despite the fact that a July cut would not have been enough to give most mortgage holders a meaningful reprieve, it would have been welcome by the millions of Aussies who are holding out for more cost-of-living relief,' he said on Tuesday. 'Nobody will be breaking out the Wagyu beef or shiraz.' On Thursday, banking giant Commonwealth Bank also warned that households remained cautious. 'While we still anticipate a pick-up in household spending in 2025, a slower rate-cutting cycle could soften this recovery over the remainder of the year,' CBA senior economist Belinda Allen said. Consumer spending lifted 0.3 per cent in June, the bank's closely watched household spending index revealed, for a third month of gains following rises of 0.4 per cent in both April and May.
News.com.au
04-07-2025
- Business
- News.com.au
Aussies splash cash on clothes and cars in May spending surge as rate cut chances firm up
Household spending soared in the month of May, surpassing market estimates just days after retail sales underwhelmed. Fresh figures from the ABS show household spending indicators gained 0.9 per cent month on month beating market predictions of a 0.5 per cent increase. The rise in household spending came just two days after soft retail data came in at 0.2 per cent, against forecasts of a 0.5 per cent lift. Commonwealth Bank senior economist Belinda Allen explained to NewsWire the difference in figures comes from how the data is collated. 'There's a few differences between the two releases, with retail trade being survey-based and only capturing around a third of consumer spending,' Ms Allen said. 'Monthly household spending intentions data, which came out today, uses bank transactional data and other sources so it includes a bit over 60 per cent of consumer spending. 'Depending on what cateorgy does well can mean the difference between the releases.' According to Friday's monthly household spending data seven of the nine spending categories rose in May, led by Clothing and footwear, which was up 3.7 per cent, Transport gained 1.7 per cent, and Miscellaneous goods and services rose 1.3 per cent. Alcoholic beverages and tobacco slipped 1.4 per cent and Food dropped 0.1 per cent to be the only two negative quarters. This follows a flat result in April and a 0.1 per cent fall in March. Robert Ewing, ABS head of business statistics, said the rise in May was driven by spending on discretionary goods and services. 'Discretionary spending rose 1.1 per cent, as households spent more on clothing and footwear, new vehicles, and dining out,' he said. 'Meanwhile, non-discretionary spending was up 0.5 per cent, rising for a fifth consecutive month.' Household spending is now 4.2 per cent higher than this time last year, led by health spending which jumped 8.4 per cent and miscellaneous goods and services which is up 8.3 per cent. Services spending was 7.5 per cent higher than May 2024, while goods spending was up 1.5 per cent. The boost in household spending indicators comes just days after the ABS also released its retail sales data which underwhelmed market expectations. Retail sales were up 0.2 per cent in May following a disappointing April which saw sales fall by 0.1 per cent even though Australians were treated to two public holidays in the month. Ms Allen said regardless of the figure used, it is too low to impact the RBA rate decision next week. 'When you look at the collective data since the May release … there has been enough to show that lower interest rates are both necessary and manageable for the Australian economy both from an activity and inflation perspective' she said. 'We have to remember interest rates are still in restrictive territory, they will still be in the restrictive territory with this next rate cut and the economic recovery is still pretty lacklustre.' Ms Allen said even though consumer spending picked up on today's household spending data it is too early to tell if Australia's economy is starting to track better. 'There are some green shoots in the data,' she said. 'Discretionary spend is a little stronger, including eating and drinking out so there are some areas where you can see an improvement in consumer spending. 'But if you look at how much it has lifted throughout the year, it is still pretty soft.'
Reuters
04-07-2025
- Business
- Reuters
Australia household spending rebounds in May, after fallow stretch
SYDNEY, July 4 (Reuters) - Australian household spending rebounded in May after three months of weakness, as consumers snapped up clothes and cars in a sign lower borrowing costs and rising real incomes might finally being felt. The Australian Bureau of Statistics' monthly household spending indicator (MHSI) showed a seasonally adjusted rise of 0.9% in May, when analysts had looked for an increase of around 0.5%. That followed a flat April and a 0.1% dip in March and left annual growth modestly higher at 4.2%. "Discretionary spending rose 1.1%, as households spent more on clothing and footwear, new vehicles, and dining out," said Robert Ewing, ABS head of business statistics. Discretionary spending had fallen in both of the previous two months. The improvement was in contrast to data showing retail sales alone rose just 0.2% in May, half the gain expected by markets. Household spending comprises around 52% of gross domestic product but made only a minor contribution to growth in the first quarter when the economy expanded by a meagre 0.2%. Financial markets are still convinced the Reserve Bank of Australia will cut interest rates again when it meets next week, given consumption growth remains short of its forecasts and inflation slowed markedly in May. Futures imply around a 97% chance the RBA will trim its cash rate by 25 basis points to 3.60%, the third easing this cycle. The MHSI series will replace the current retail sales report from July and is much broader in scope, covering 68% of household consumption, more than double the retail survey. It includes spending on many services and should offer a better guide on what to expect from household consumption in the gross domestic product report.
