Perth's housing market is still lagging behind — and it will take more than a rate cut to fix things
Housing oversupply and sluggish migration rates mean today's expected rate cut will do little to stimulate Perth's property market.In previous cycles, interest rate cuts have stimulated the housing sector, as lower borrowing costs tempt first-home buyers and investors into the market, with flow-on effects to building approvals over time.
The ABS said general government spending likely added 0.5 percentage points to gross domestic product ( GDP ) growth in the June quarter , while investment subtracted 0.1 percentage points. Public spending accounts for around 24% of GDP , data for which are due on Wednesday.
Gross domestic product climbed 0.9 percent from the third quarter , when it gained a revised 0.3 percent, the Bureau of Statistics said in Sydney. Machinery and equipment spending surged 10.9 percent in the quarter from the previous three months, adding 0.8 percentage points to GDP , report
Australian government spending on operational items rose 0.9% in the September quarter from the previous quarter to an inflation-adjusted $93.55 billion, the Australian Bureau of Statistics reported on Tuesday.
Investment in assets by the government and public enterprises also rose 1.9% to $24.13 billion.
The ABS said general government spending likely added 0.2 percentage points to gross domestic product (GDP) growth in the September quarter, while investment contributed 0.1 percentage points.
Public spending accounts for around 24% of GDP, data for which are due on Wednesday.
Economic growth was forecast to rise 0.5% last quarter, according to a median of economists polled by Reuters, nudging the annual pace up to 1.7%.
Australia, New Zealand dollars drift off, data continue to diverge .
Australia, New Zealand dollars drift off, data continue to divergeThe Aussie was stuck at $0.6812, having slipped further away from its recent peak at $0.6862. Immediate support lies around $0.6800. The kiwi dollar drifted off to $0.6527 and really needs to break last week's four-month top of $0.6576 to regain momentum.