Australia: Mixed economic releases - TDS

Analysts at TDS note that Australia’s April Home loans registered a good mix of +0.2% m/m increase in owner-occupied loan value and a dip of -0.9% m/m in home loans for rent and resale following a revised -8.8% m/m fall in the previous month.

Key Quotes

“While finance is shrinking (as the RBA noted this time last week) there are two different themes with investor finance crashing at -15%/y and owner-occupied doing nicely at +4.2%/y.”

“NAB Business Confidence eased from near-record highs of 21 to a still high 15 in May (the 10y average for conditions is +4). The components were all solid, with employment +8, investment +8, labour costs still buoyant at 1.0%, but still not filtering into the WCI measure.”