US Inflation Data:
- US consumer prices were unchanged in October after a 0.4% rise in September, with annual inflation slowing to 3.2% in October.
- Energy costs dropped by 4.5%, while food prices increased at a softer pace of 3.3%. Shelter rose by 6.7%, down from 7.2%.
US Labor Market and Consumer Data:
- Unemployment rate increased to 3.9% in the US, marking the highest jobless rate since January 2022.
- Retail sales decreased by 0.1% month over month in October, ending a six-month streak of increases.
Business Confidence and Manufacturing PMI in China:
- ISM Manufacturing PMI slipped to a reading of 46.7 in October, indicating fragility in China's economic recovery.
- Despite challenges, business confidence improved slightly to a reading of 55.6%.
Eurozone Economic Insights:
- Eurozone GDP contracted by 0.1% in the September quarter, the first contraction since 2020.
- Consumer price index decreased by 0.5% in November compared to October's reading, reaching its lowest level since July of 2021.
Australian Economy and RBA Update:
- Domestic demand-driven inflation is now keeping Australian inflation higher as per Michelle Bullock's speech.
- Aggregate domestic demand remains too high compared to aggregate supply, leading to pressure on interest rates remaining on the upside.
RBA Rate Decision:
- The RBA kept the cash rate on hold following improved inflation data result from last week.
- The next rate decision isn't until the 6th of February, as they take January off. Starting in 2024, they will only be meeting eight times instead of the current 11 times.
Inflation Data and Trends:
- The monthly CPI rose by 1.5%, down from 5.6% compared to the previous year's change.
- Goods inflation continued to ease, while services inflation read is still pending, with some sectors showing positive trends but others remaining high.
Labour Market Data:
- Employment rose by a solid 55,000 jobs in October.
- There has been a significant shift in the composition of employment growth, with part-time employment up and full-time employment falling since the middle of the year.
Consumer Sentiment and Retail Spending:
- Consumer sentiment index returned to deeply pessimistic levels after the November rate hike.
- Retail sales declined by 0.2% in October, except for food sales, indicating subdued underlying trend despite record population growth.
Business Conditions and Confidence:
- Business confidence fell back into negative territory in October after being positive for four months.
- Employment conditions fell for the second consecutive month but remain above average, reflecting tight labor markets.
Housing Credit and Property Prices:
- Total loan commitments rose by 5.4% to $26.7 billion in October after a rise of 1.5% in September.
- House prices grew nationally by 0.6% as housing credit also saw increases both for owner occupied housing and investor housing.
Property Market Update:
- Housing markets within different regions showed varying performance with Sydney experiencing slight growth while Melbourne went backward.
- Perth had strong market performance with substantial rises in value; however, Hobart experienced negative falls.
Macro Factors Influencing Property Market:
- Interest rates are a critical factor that influences demand and supply dynamics.
- Inflation plays an important role as it impacts interest rate movements which further influence property market behavior
Property Market Trends for 2024:
- Consideration of housing incentives and their impact on the property market in 2024.
- Evaluation of building approvals, including legislative changes around planning and the introduction of additional supply to meet marketplace needs.
- Analysis of economic management, growth forecasts, debt management, and potential impacts on different states and territories.
- Assessment of manufacturing opportunities in specific markets based on factors such as energy resources.
- Examination of unemployment rates and their influence on state momentum and short-term property values.
- Deep dive into affordability, incomes, demographic profiles, and their long-term implications for demand and supply.
Seasonal Wishes and Health Reminder:
- Seasonal greetings extended to listeners with well-wishes for the festive season.
- Cautionary advice regarding sun care due to personal experience with melanoma, emphasizing the importance of protection from sun damage.
Closing Remarks and Encouragement:
- Expressing gratitude for audience engagement till the end of the update.
- Extended wishes for a Merry Christmas, Happy New Year, and realization of plans in 2024 through empowered knowledge-driven actions.