July Update

July 2018 Update

Summary points

• RBA kept rates on hold at 1.5% at its meeting this month.
• GDP Growth has averaged 2.5% over the last 5 years, which is slightly below estimates.
• Forecasts for GDP growth remain slightly above 3%.
• dwelling investment has gone from making a positive contribution to growth two years ago to being roughly flat over the year to March.
• Dwelling investment is not expected to remain at a high level.
• Lower fertility rates and therefore population growth has slowed in some regions, which has led to a slowing in demand for property.
• Higher commodity prices have provided higher income for the nation.
• Employment rates have been strong but wage growth has been weak.
• House prices have been relatively stable across capital cities over the last 6 months with strict borrowing requirements have made it difficult for people to take out loans.
• The ASX200 has increased from an opening of 6,194 at the beginning of the month to close the month 86 points higher at 6,280 (increase of 1.3% for the month).

If you would like to see the full RBA report and monetary policy click here. Also, if you would like to see the RBA’s report on state of the housing market, click here.

Nick Lucey BAppEc (financial planning)
Director | Financial Adviser

Nest Advisory Group