At the moment, rising fuel prices are placing a cap on spending. |
I guess the big surprise is that inflation isn't higher, given the environment that we're in. |
It looks like the economy picked up in the second quarter. The leap higher in commodity prices is helping underpin profits and driving export earnings and investment. |
It's encouraging to see an upgrade in the outlook and business investment will be supportive of economic growth. |
It's significant for the outlook for the economy if housing approvals turn the corner. In the second half of the year, housing will switch from being a drag on the economy to a positive. |
The scramble by resource companies to boost capacity to meet world demand and take advantage of record commodity prices is clearly providing a major impetus to State growth. |
The weakness in the household sector of the economy has helped to contain core inflation despite rising energy and upstream prices. I think while that situation persists, interest rates will certainly be on hold. |
This suggests that approvals are bouncing along the bottom, with virtually no change over the last five months. |
We suspect that will be the only move this year. |