Australia’s Investing In Businesses And Building Houses
Recent changes to Australia’s economic climate provided good news, particularly for business owners and builders, with the country’s business investment hitting the highest figures in over a year last quarter, whilst the number of approved home construction projects hit the highest in an eight-month time span. These developments provide a promising outlook on Australia’s economic future.
From July-September, business investments grew by 1% (seasonally adjusted), to AU$29.4B, according to data from the Australian Bureau of Statistics (ABS). This quarter’s gains made it the third straight quarter of gains in Australia’s financial year, and is also the country’s best economic performance since mid-2016.
Spending on equipment, plant and machinery also rose by 0.7%, which also added a fairly modest amount to Australia’s economic growth in the third quarter. The two fields that experienced the highest gains were investment outside mining as well as manufacturing, both of which set new records with their growths.
For those in the home construction business, like a roof maintenance in Central Coast, there’s some good news as well, with approvals for new residential developments increasing by 0.9% in October. This is notable due to analysts having predicted a decline of 1.8%. Another noteworthy bit is that the number of approvals for October 2017 is a marked increase of 18.4% compared to October 2016, which means more homeowners and potential customers.
This recent spike in home building in the country marked the continuation of a four-year long boom that the Reserve Bank of Australia notes as having been a great support to the country’s economy. This one was another unexpected outcome, since analysts predicted that residential construction was to slow down within the third quarter.
Figures due soon will likely show Australia’s GDP, sitting at about AU$1.7T, to rise from anywhere between .5% (AU$1.785T) to .8%(AU$1.836T) during the healthy third quarter.
AMP Capital Economist Diana Mousina, predicted that non-mining investment would increase by 12% over 2017, a large improvement from last year’s 2% increase. To contrast, however, mining investment recently fell down by 20%. Mousina estimates that investments will even out sometime in 2017, or 2018.