Some of us aren’t sad to see 2017 go, and with data that confirms 2018 is set to be a better year economically, we can’t help but look forward to the New Year and continued economic growth.
Here’s a little insight into why we think 2018 will be bigger and better than 2017.
To date, employment has steadily increased over 13 months, reaching the best rate in 12 years. Job vacancies rose to a 6-year high, comprising 172,395 job ads – up 12.1% compared to October 2016.
With the unemployment rate lowering to 5.4%, a 9-year low, business confidence has increased over a long-term average, resulting in the strongest gain in 15 and a half years, up to 26.9%.
New motor vehicle sales rose by 2.5% in 12 months, according to the Federal Chamber of Automotive Industries (FCAI). More people could afford plane tickets, with 78.4% of seats occupied on domestic flights as of September in 2017.
Dwelling approvals rose for the 9th month straight and townhouse approvals are at a 20-year high. The annual rate of construction inflation is at an 8 and a half year high, rising from 2.4% to 3.8%.
In the investment sector, it’s predicted that 2018 will see the fourth estimate of investment at $108.9 billion, which is 1.6% higher than the fourth estimate for 2017. The upgrade in investment between the first and fourth estimates is 34.1% – the largest in 12 years.
The Commonwealth Bank Business Sales Indicator (BSI) measures the rise of economy-wide spending by 0.6% in trend terms in October after a 0.5% increase in September. Thus, spending growth was the strongest in 5 months and above the long-term trend pace.
As a result, economic growth has gone from 1.9% to 2.8%, the best in 15 months and set to go even higher. The Royal Bank of Australia (RBA) predicts an economic growth of over 3% which is the historical number where employment grows and unemployment shrinks.
What does all this mean for you? As a West Australian, this means that our state is finally beginning to flourish once again. More jobs will become available, rent and housing prices are holding steady after over two years of decline and spending on retail is set to increase.
The fact of the matter is, we are experiencing record highs that show promise for 2018. If you would like to know more about what is predicted for 2018, you can read Peter Switzer’s full article here: http://ow.ly/SYY130hbOLL.