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Job data puts pressure on interest rates
Job data puts pressure on interest rates

A string of key indicators suggest the Australian economy is slowing quickly.

From job ads to sales through the nation's shopping males, data out this morning all point to a material deterioration in the economy. It now puts pressure on the Reserve Bank board which meets tomorrow.

The Australian Bureau of Statistics reported that retail trade in July fell by 0.8 per cent after a 1.2 per cent jump in June.

The drop was almost solely due to a 10.2 per cent slump in sales through the nation's department sales. There was a 0.9 per cent fall in sales of clothing and footwear.

Sales of food were up by 0.1 per cent, household goods jumped by 2.4 per cent while sales through cafes and restaurants improved by 0.3 per cent.

In WA, total sales edged down by 0.6 per cent.

The bureau also reported a 0.7 per cent fall in business profits through the June quarter.

Sales of manufactured goods dropped by 1.8 per cent through the quarter, offset by a 1.6 per cent improvement in sales of wholesale goods.

Companies reported a 0.6 per cent increase in inventories while wages and salaries increased by 0.8 per cent.

ANZ's measure of job ads reported a 2.3 per cent in August following a 0.8 per cent drop in July.

It was the fifth consecutive monthly fall in ads. Ads are now 9.6 per cent lower than a year ago.

ANZ's head of Australian economics Ian Colhoun said it was clear the slowdown in the jobs market was affecting the mining States.

"Of most interest from a macroeconomic perspective has been the emerging weakening trend in WA, the Northern Territory and Queensland; the states most positively influenced by the mining investment boom," he said.

"Job advertising has now been weakening for around six months in each State."

The situation is little better for those with property.

RP-Data Rismark reported that property values in Perth fell by 1.2 per cent in August.

House values were down by one per cent last month to be up by 0.6 per cent over the quarter.

Unit values fell by 4.2 per cent in August but over the year they are up by 0.1 per cent.