Balance of Payments

Describes the flow of all goods and services, income, and transfer payments to and from Australia. This figure acts as a gauge of how Australia 's economy interacts with the rest of the world. Whereas the other side of the Balance of Payments, the Capital and Financial Accounts, deals mainly with financial assets and investments, the Current Account gives a detailed breakdown of how the country intermingles with rest of the global economy on a practical, non-investment basis.

The Current Account is comprised of the value of the trade balance (exports and imports for goods and services), income payments (such as interest, dividends and salaries) and unilateral transfers (aid, taxes, and one-way gifts). A positive value (current account surplus) indicates that the flow of capital from these components into Australia exceeds the capital leaving Australia. A negative value (current account deficit) means that there is a net capital outflow from these sources. Persistent Current Account deficits may lead to a natural depreciation of a currency, as trade, income and transfer payments usually reflect Australian dollars leaving the country to make payments in a foreign currency (just as underlying surpluses act as an appreciating weight).

There are a number of factors that often work to diminish the impact of the Current Account release on the market. The report is not very timely, released every quarter. In addition, many of the components that lead to the final Current Account production and trade figures are known well in advance. Lastly, since the report reflect data for a specific reporting month, any significant developments in the Current Account should plausibly have been felt during that quarter and not during the release of data.

But just like GDP and Trade Balance, Current Account is central to forecasting long term developments in foreign exchange rates. It gives a detailed picture of how the Australian economy interacts internationally, breaking down these interactions into separate components that can be tracked and often anticipated. Thus the weight of the Current Account has led it to historically be one of the more important reports out of Australia.

The figure appears in headlines as the Current Account balance in billions of Aussie Dollars.

Relevance : Tends to move markets on release
Release schedule : 1:30 (GMT); quarterly, with previous quarter released three months later
Revisions schedule : Revisions are made on an as-needed basis when more accurate data is available. As the report presents data for the past six quarters, each release may feature revisions not only to the preceding quarter but to previous ones as well.
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5302.0

The trade balance figure is simply the difference between the amount of export and imports of Australian goods and services for the reported month with Australia and other foreign trade partners. Subsequently, when exports are greater than imports, or positive net exports, a trade surplus is created. However, when imports are greater than exports, a deficit is created. Simply put, here, there is more money leaving the country than actually coming in. As a result, the report is taken into heavy consideration as it indicates flow of goods and services and stand as one of the biggest components of the Balance of Payments report.

There are a number of factors that work to diminish the market impact of Australian Trade Balance. The report is not very timely, released nearly a month after the reporting period. In addition, developments in many of the figure's components are usually well anticipated. Lastly, since the report reflects data for a specific reporting month, any significant changes in the Trade Balance should plausibly have been already felt during the month and not during the release of data. Despite these considerations, the Trade Balance is essential to forecasting long term trends in foreign exchange rates and has historically been one of the more important reports out of Australia.

The Trade Balance is reported in headlines seasonally adjusted, usually in millions of AUD. Technical Note: More specifically, Trade Balance is the aggregate of two separate balances: visible and invisible trade balance. Visible trade covers physical goods where invisible trade covers intangibles like services.

Relevance : Tends to move markets on release
Release schedule : 1:30 (GMT); monthly, near the end of every month
Revisions schedule : Monthly
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5368.0

Goods and services produced domestically that are sold or awaiting sale outside of Australia . As one of the world's largest exporters of gold and metal commodities, Australia relies heavily on its exports to fuel economic growth. For this reason Exports is one of eight components used to construct the Conference Board Leading Index, a widely used index to forecast Australia 's economic health. The headline number is the value of Exports for the given time period.

The value of Exports is an important input in calculations of the important Trade Balance and the Current Account. Exports are rarely considered in isolation. Rather, they are most often analyzed in comparison to Imports. Generally, high exports indicate a country's goods are seen as desirable abroad, which signals that this country's currency is relatively weak (cheap) compared to that of its trading partners and may appreciate in the future due to robust demand.

Relevance : Tends to move markets on release
Release schedule : 1:30 (GMT); monthly, in the fifth week following the reporting month.
Revisions schedule : Monthly
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5368.0

Goods and services produced overseas that are sold or awaiting sale inside of Australia . The value of imports is an important input in calculations of the Trade Balance and the Current Account. Imports are rarely considered in isolation. Rather, they are most often analyzed in comparison to Exports to give a detailed picture of the demand for Australian goods and services, and the demand in Australia for outside goods and services.

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); monthly, in the fifth week following the reporting month.
Revisions schedule : Monthly
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5368.0

GDP and Output Report

The market value of all final goods and services produced in Australia during a specific period. The growth rate of GDP is used as a broad gauge of the overall economic health. Robust GDP growth signals a heightened level of activity that is generally associated with a healthy economy. However, economic expansion also raises concerns about inflationary pressures, and strong GDP growth may induces the Australian central bank to raise interest rates in order to combat inflation. As a result, positive GDP readings are typically bullish for the Australian dollar, while slumping GDP growth is usually bearish.

Technically, GDP is calculated according to the following formula:

GDP = C + I + G + (EX - IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The headline figure for GDP is an annualized percentage growth rate.

Relevance : Tends to move markets on release
Release schedule : 1:30 (GMT); quarterly, with previous quarter's data released three months later
Revisions schedule : The revisions are of two types: those made quarterly to recent releases and those made annually as a consequence of redistribution across all quarters within a year following revisions to annual totals.
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5206.0

The value of actual and expected purchases of new capital. Capital purchases are investments in productive capacity like new machinery, plants, or improvements & additions to existing assets. Such purchases are made by companies optimistic that costs will be surmounted by future demand. For instance, Gold mines may purchase new Gold mining equipment to increase productivity in order to meet rising demand for Gold. Private Capital Expenditures generally indicate higher business confidence and reflect a healthy economy.

The headline number is the seasonally adjusted percentage change in new private capital expenditures from the previous quarter.

Technical Note: The figure is derived from the results of an Australian Bureau of Statistics survey of 8000 private firms. The survey asks for three items: expenditures for the reference period (Act, actual), expected expenditures in the short-term (E1), and expected expenditures in the long-term (E2). Long-term prospects can be assessed by looking at time-specific data as businesses optimistic about the long-run will have higher planned expenditures in both the short and long-term.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); quarterly, with previous quarter's data released three months later
Revision Schedule: Quarterly
Source of Report : Australian Bureau of Statistics (ABS)
Web Address : http://www.abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5625.0

Tracks unsold goods among Australian industrial firm. Inventories are often able to accentuate economic turning points. A significant decrease in inventories implies that the economy is on the verge of rapid growth because stockrooms for businesses are empty and need to be replenished, which triggers higher production overall.

Recent technological advancements allow firms to manage inventories more quickly and efficiently, keeping inventory levels lower. Accordingly, declines in inventory stores are often indicative of productivity increases rather than changes in demand. But these logistical advances put particular emphasis on growing inventories. Increases in stocks of goods signal declining demand in Australian.

The headline number is the percentage change in inventories from the previous quarter. Because of the many factors involved with changes in inventory, it is best to consult news reports and in depth analysis of the figure to avoid data misinterpretation.

Relevance: Rarely affects markets
Release schedule: 1:30 (GMT); quarterly, three months after the reported quarter
Source of report: Australian Bureau of Statistics
Web Address: http://www.abs.gov.au/
Address of release: http://www.abs.gov.au/ausstats

Tracks monthly developments in the Australian services sector, condensing data into an overall boom or bust index. The composite index is based on the surveys for sales, new orders, employment, inventories and deliveries, compiled by American International Group. The AIG Performance of Service Index excludes industrial manufacturing sectors that tend to be volatile and seasonal, giving a clean picture of Australia's service sector that accounts for a majority of Aussie GDP. The headline number uses a 50 baseline, where above 50 signifies growth, while a number below 50 shows a contraction in the services sector.

Relevance:Rarely affects markets
Release schedule: 23:30 (GMT); monthly, in the first week following the reporting month.
Source of report: Australian Industry Group
Web Address: http://www.aigroup.asn.au/
Address of release: http://www.aigroup.asn.au/scripts/cgiip.exe/WService=aigroup/ccms.r?PageId=808

Company Operating Profits - Australia

The profits of Australian companies after all expenses have been accounted for. Company Operating Profits is an important indicator of economic health as positive profits allow firms to re-invest to increase efficiency and expand output. Higher profits also suggest stronger demand and productivity and therefore a better overall economic outlook.

The headline number is the percentage change in quarterly Company Operating Profits from that of the previous quarter.

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); quarterly, data released three months after the reported quarter.
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5676.0

Confidence and Sentiment Reports

Officially called the Consumer Sentiment Index, this figure measures the level of consumer confidence and is an average of five indexes measuring different aspects of consumer fiscal health. This is one of the few indicators that are entirely expectation based. Households report their views on current buying conditions for household items and where they feel are the "wisest" places to invest savings. Views on future political policy (taxes, politicians, government) and economic conditions (wages, inflation, unemployment) are also surveyed.

Confidence figures are often leading indicators for the consumer spending and the economy as a whole. The headline figure is percentage change in the index value from that of the previous month.

Relevance : Moderate market impact
Release Schedule : 0:30 (GMT); monthly,
Source of Report : Australian Industry Group
Web Address : http://www.unimelb.edu.au/
Address of release : http://melbourneinstitute.com/research/macro/csi.html

A composite index used to forecast short to mid-term growth in the Australian economy. Changes in the indicators selected are thought to precede developments in the economy as a whole. Therefore, an increase in the index forecasts economic expansion while a decrease in the index projects a future contraction.

The Conference Board of Australia considers eight indicators in the calculation of the index: money supply, share prices, rural goods exports, building approvals, sales to inventories ratio, gross operating surplus, yield spread, and medium-term government bond yields. The index is calculated as a percent change off a base year; headlines report the figure in a percent change from the previous month.

Relevance : Moderate market impact
Release Schedule : 0:00 (GMT); monthly, third week of the following month.
Revisions Schedule : Subject to revisions
Source of Report : The Conference Board
Web Address : http://www.conference-board.org/
Address of Release : http://www.conference-board.org/economics/bci/press_archive.cfm?cid=7

A survey of the current state of the business sector in Australia . Based on a survey of hundreds of small to large sized companies, the National Australia Bank delivers monthly and more comprehensive quarterly reports from statistical and antidotal data.

This comprehensive survey primarily provides insight into the state of the Australian economy and puts forth leading indicators that signal its future direction. Thus the survey's findings, if unexpected, have the power to move markets directly.

The National Australia Bank releases both a monthly and quarterly report. The quarterly is more comprehensive, surveying around 1000 small to large non-farm firms. The quarterly provides greater detail on the data as well as provides a short to mid-term outlook of Australia . Because of seasonal volatility and government protections the survey only excludes the farm sector.

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); Monthly and Quarterly
Source of report : National Australia Bank
Web Address : http://www.national.com.au
Address of release : http://www.national.com.au/Business_Solutions/0,,148,00.html

Prices, Wages and Sales Figures

Measures changes in the selling prices received by producers. Because PPI analyzes changes in price that occur before the good reaches the retail level, it gives an early indication of inflationary pressures consumers will later face for finished goods. The PPI reports data broken into stages of production, thereby tracking how manufacturers pass on increased costs or efficiency gains to the final consumer. The index may therefore be used as a detailed picture of how inflationary pressures feed through production lines and as a leading indicator for inflation pressures.

The headline is the percentage change in the index from the previous quarter and year.

Relevance : Moderate market impact
Release schedule : 1:30 (GMT); quarterly, on approximately the 20 th of the month following the end of the reporting quarter
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/

A monthly estimate of inflation in the Australian economy. The report replicates the methodology used by the Australian Bureau of Statistics to calculate quarterly CPI, striving to correspond closely with official government numbers. The figure is important because it acts as a timelier indicator of inflation, coming out monthly instead of the quarterly CPI figures. Released one day before interest rate decisions are made, the figure may influence RBA considerations for rate hikes or reductions.

As with any gauge of inflation in Australia , a high value in the figure is bullish for the Australian dollar, since real inflationary pressures are usually met by the Reserve Bank of Australia with bullish rate hikes. The headline figure is the month-over-month or annualized inflation rate.

Relevance : Rarely affects markets
Release schedule : 0:00 (GMT); monthly, on the day prior to each monthly meeting of the Reserve Bank of Australia Board
Source of report : The University of Melbourne - Faculty of Economics and Commerce
Web Address : http://www.ecom.unimelb.edu.au/
Address of release : http://melbourneinstitute.com/research/macro/tdsec.html

Measures quarterly changes in Australian wages. Two versions of the Labor Price Index exist: one which includes bonuses, and one which excludes them. The Labor Price Index is similar to the US Employment Cost Index, an early indicator of wages pressure on inflation. An increase in the index suggests rising inflation pressures because firms tend to eventually pass higher labor costs onto consumers in the form of higher prices.

The headline figure is the quarterly percentage change in the Labor Price Index.

Technical note: The index is constructed by combining 8 separate indexes. The 4 wage price indexes are:
• ordinary time hourly rates of pay excluding bonuses index
• ordinary time hourly rates of pay including bonuses index
• total hourly rates of pay excluding bonuses index
• total hourly rates of pay including bonuses index

The 4 non-wage price indexes are:
• annual and public holiday leave
• superannuation
• payroll tax
• workers' compensation

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); quarterly, approximately a month and a half following end of reporting quarter
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/

Gauges Australian consumer spending. The Cashcard Retail Index tracks cash, Electronic Point of Sale (Debit), credit cards and check transactions in Australia . The Cashcard Retail Index (RAI) is a timely indicator of Australia 's retail spending, released monthly about 10 days after the reporting period. An increasing figure signal consumer confidence and economic growth, but higher consumption may also lead to inflationary pressures.

The headline figure is the monthly percentage change in the index.

Relevance : Moderate market impact
Release schedule : 20:00 (GMT); monthly, on the first 10 days following the reported month
Source of report : Cashcard
Web Address : http://www.cashcard.com.au/
Address of release : http://www.cashcard.com.au/News.htm

Tracks changes in housing prices in Australia 's eight provincial capital cities: Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra. The headline number is the weighted average percentage change from the previous quarter. Like any price index, the housing price indexes measure inflationary pressures, in this case specifically from the housing sector. The headline number is the quarterly percentage change in the index.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); quarterly, two months after the reported quarter
Revision Schedule: Quarterly
Source of Report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/

Measure of the total sales of goods and services by retail stores in Australia. Retail Sales is an important measure of consumer spending and inflationary pressures in Australia. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With Retail Trade being the foremost indicator for consumer spending, this figure is extremely important in understanding Australia's economy.

The headline number percentage change in Retail Sales from that of the previous month.

Relevance : Tends to move markets on release
Release schedule : 22:45 (GMT); monthly, roughly 30 days following the end of the reporting month
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/

Tracks automobile sales in Australia . Though motor vehicle sales are a small component of the overall economy, expenditures of such "big-ticket" items give good insight into consumer's spending ability. Additionally, the figure gauges consumer confidence; consumers and businesses are only likely to make the outlays needed for motor vehicles if they are optimistic about their current and future economic well being.

The figure is reported both as number of new automobile sales and as monthly percentage change.

Relevance : Moderate market impact
Release schedule : 1:30 (GMT); monthly, on approximately the 20 th of the following month
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/

Monetary Policy - Money and Interest Rates

Meeting eleven times a year, the Reserve Bank of Australia stands as the central monetary authority for the Australian economy. As a result, the bank's main responsibility is to keep inflation tamed to the target 2-3 percent band set by its own policy makers by changing the overnight cash rate. By adjusting the overall rate, central bankers attempt to keep price increases at the consumer and producer level stable while maintaining healthy economic growth.

The Reserve Bank of Australia 's Cash Rate Target decision has a huge influence on its financial markets. Changes in rates affect interest rates in consumer loans, mortgages, and bond rates. Since short term interest rates essentially reflect the return on holding a currency, rate decisions usually affect the exchange rate of the Australian Dollar. Increases in rates or even expectations for increases tend to cause the Australian Dollar to appreciate, while rate decreases cause the currency to depreciate.

Relevance : Tends to move markets on release
Release Schedule : 23:30 (GMT); The Board normally meets eleven times each year, on the first Tuesday of the month except in January.
Source of Report : Reserve Bank of Australia
Web Address : http://www.rba.gov.au
Address of Release : http://www.rba.gov.au/Statistics/cashrate_target.html
AKA: Reserve Bank of Australia Monetary Policy, Target Overnight Rate, Key Interest Rate, Key Interest Policy Rate, Cash Rate Target

The Reserve Bank of Australia (RBA) has a target inflation of 2 to 3 percent. When the Governor for the RBA makes a speech regarding the current economy market participants will pay attention to a number of areas.

Markets tend to focus on what the Reserve Bank of Australia deems as key points that could suggest future interest rate changes. For example, if the speech states that high energy costs and a rapidly expanding housing market are fueling inflation, then the financial markets will expect an interest rate increase in order to suppress inflation. Markets will also monitor these key sectors in the upcoming period in order to gauge the likelihood of a rate increases continuing in the future.

Markets focus heavily on the language used in the Governor's speech. If the Governor is cautious about the inflationary outlook for the economy ("Hawkish"), then the market sees a higher likelihood of future rate increases. Optimism in the Governor's outlook ("Dovish") would suggest to markets that inflation is in check and that future rate increases are less likely, with the possibility of declines in rates.

The Governor's speech is also an opportunity to better understand what his or her goals are in managing the RBA, changes in the bank's policies, and what stance he or she may take on controversial economic issues. For example, some Governor's promote a weaker currency in order to promote the export sector. In this example the Governor would keep interest low so that the Australian Dollar would depreciate against foreign currencies so that imports will lessen and exports will increase. Speeches are opportunities for Central Bank Governors to explain how monetary policy may be implemented.

Relevance : Tends to move markets on release
Release Schedule : The Board normally meets eleven times each year, on the first Tuesday of the month except in January.
Source of Report : Reserve Bank of Australia
Web Address : http://www.rba.gov.au/
Address of Release : http://www.rba.gov.au/Speeches/index.html

The value of loans provided to individuals and corporations. An increase in Investment Lending forecasts growth in the economy since greater capital investments typically finance expansions of output and productivity and usually occur in periods of high consumer and business confidence. During these periods borrowers are willing to make investments because they hold reasonable expectations that their investments will pay off in the future. By making these investments, borrowers both increase private expenditure and enhance the future productive capacity of the economy. Though, this figure typically does not have significant impact upon markets.

The figure is reported as a seasonally adjusted percentage change from the previous month.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); monthly, approximately 40-45 days after the reporting month
Source of Report : Australian Bureau of Statistics
Web Address : http://abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5609.0
Refer > Investment Housing - Fixed Loans
AKA: Investment Housing Loans

A bulletin board that lists all statistical data published by the Reserve Bank of Australia

Relevance : Tends to move markets on release
Release Schedule : Updated constantly
Source of Report : Reserve Bank of Australia
Web Address : http://www.rba.gov.au
Address of Release : http://www.rba.gov.au/Statistics/Bulletin/index.html
AKA: Bulletin Statistical Tables

Employment

Tracks the number of employed in Australia . The figure appears in the monthly Labour Force Survey conducted by the Australian Bureau of Statistics. A surge in new employment suggests higher spending potential and budding inflation pressures, which the RBA often counters with rate increases.

The headline figure is the annualized percentage change in employed workers.

Relevance : Moderate market impact
Release schedule : 1:30 (GMT); monthly, first week of every month
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/
AKA : Change in Employed Persons

The percent of unemployed persons in the labor force. The Unemployment Rate serves as a leading indicator of the health of the labor market. The report is very timely, coming out just a few weeks after the reporting period. Additionally, the figure has a significant impact on the market because of the overall importance of employment for the economy. Higher unemployment leads to less income for Australian workers who, in turn, may reduce consumption. As consumer spending contributes to a majority of Australia 's GDP, developments in the labor market directly affect prospects for Australian growth.

Note : Unemployed persons are those who have no job but are actively seeking work; the labor force is the total of employed and unemployed persons.

Relevance : Moderate market impact
Release schedule : 1:30 (GMT); monthly, mid-month following the reporting month's end
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/

Measures the monthly change in skilled job vacancies across Australia . Expressed as an index, the Skilled Vacancies Index is a leading indicator for the Australian Labor market. A high number of vacancies indicate a job market where labor is in demand and employers are pressured to increase wages. Rising wages put upward pressure on inflation than can lead to interest rate changes. On the other hand fewer skilled vacancies imply a tighter job market where skilled workers face greater difficulty finding employment, possibly weighing wages down.

The headline value is the percentage change in the Skilled Vacancies Index (SVI) from the previous month.

Relevance : Rarely affects markets
Release schedule : 1:00 (GMT); monthly, the last week of every month
Revisions schedule : Revisions are published monthly for the data up to six months back from the current release.
Source of report : Department of Employment and Workplace Relations
Web Address : http://www.workplace.gov.au/
Address of release : http://www.workplace.gov.au/
AKA: Skilled Vacancies Index

A monthly report measuring the number of jobs advertised in the major daily newspapers and internet sites in major Australian cities. This release has historically been a good leading indicator of future labor market conditions and therefore an effective tool for forecasting employment growth. The report features two headline numbers, one for newspapers and the other for internet postings, both expressed as a percentage change from the previous month's figures.

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); monthly, in the first half of the following month.
Source of report : Australia and New Zealand Banking Group Ltd. (ANZ)
Web Address : http://www.anz.com
Address of release : http://www.anz.com/

The seasonally-adjusted proportion of the entire population that is currently employed or unemployed but actively seeking employment. The Participation Rate indicates how much of the population is willing and able to work; thus, the figure is a snapshot of the productivity potential and current conditions of Australia 's labor market. Report has little market impact.

Relevance : Rarely affects markets
Release schedule : 1:30 (GMT); monthly, approximately mid month following the reporting month
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0

Housing

The number of domestic building permits granted for the month. Strong growth in new approvals and permits indicates a growing housing market. Because real estate generally leads economic developments - housing tends to thrive at the start of booms and wane at the onset of recession - the figure can be used with others to forecast future growth in the economy as a whole. For this reason Business Approvals is one of eight components used to construct the Conference Board Leading Index, a widely used index to forecast Australia 's economic course. A strong housing market also tends to lead consumer spending. The headline number is the seasonally adjusted percentage change in new building approvals from the previous month.

Relevance: Rarely affects markets
Release Schedule : 1:30 (GMT); monthly, first week of every month.
Revision Schedule: Monthly
Source of Report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/8731.0
AKA: Building Permits

The number of domestic building permits granted for the month. Strong growth in new approvals and permits indicates a growing housing market. Because real estate generally leads economic developments - housing tends to thrive at the start of booms and wane at the onset of recession - the figure can be used with others to forecast future growth in the economy as a whole. For this reason Business Approvals is one of eight components used to construct the Conference Board Leading Index, a widely used index to forecast Australia 's economic course. A strong housing market also tends to lead consumer spending. The headline number is the seasonally adjusted percentage change in new building approvals from the previous month.

Relevance: Rarely affects markets
Release Schedule : 1:30 (GMT); monthly, first week of every month.
Revision Schedule: Monthly
Source of Report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/8731.0
AKA: Building Permits

Measures the value of all construction completed in Australia during the previous month. Officially referred to as Building Activity, this figure is used to track developments in the construction sector. Because the construction sector is a leading indicator of economic output and the rest of the housing market, a consistent decline in this number (particularly in conjunction with a decline in new building permits or housing financing) predicts a contraction in the economy as a whole. The headline number the percentage change in the value from the previous month.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); quarterly, data released three months after the reported quarter.
Source of Report : Australian Bureau of Statistics
Web Address : http://abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/8752.0
AKA: Building Activity

Tracks developments in the number and value of outstanding home loans in Australia . Home Loans are a measure of activity in the housing market. The figure, also know as Owner Occupied Housing Loans, acts as a gauge for consumer confidence, since consumers usually take out large loans only when they have sufficient saving or believe they will be able to pay them back in the future.

The sales of a new home usually trigger a sequence of consumption. In addition to the high expenditure of the new home, buyers are likely to spend more money on furnishing and customizing their home. Consequently, g rowth in the housing market spurs more consumption, generating demand for goods, services and the employees to provide them. Thus a n increase in loans may forecasts growth in the economy.

The headline figure is the percentage change in the value of outstanding loans from the previous month.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); monthly, first week of every month
Source of Report : Australian Bureau of Statistics
Web Address : http://abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/abs%40.nsf/mf/5609.0
Refer > Under number of dwelling commitments > Owner Occupied Housing
AKA: Owner Occupied Housing Loans

The number of new dwellings sold in the past month. An increase in home sales suggests a growing housing market which will tends to promote the rest of the economy. New Home Sales confirms trends in housing reports that record earlier stages of construction such as Building Approvals and Construction Work Done and is considered a leading indicator for broader economic developments.

The headline figure is the percentage change in housing sales from the previous month.

Relevance :Moderate market impact
Release Schedule : 4:00 (GMT); monthly, end of every month
Source of Report : Housing Industry Association Economics Group
Web Address : http://economics.hia.com.au/
Address of Release : http://economics.hia.com.au/archive.aspx

Tracks changes in housing prices in Australia 's eight provincial capital cities: Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra. The headline number is the weighted average percentage change from the previous quarter. Like any price index, the housing price indexes measure inflationary pressures, in this case specifically from the housing sector. The headline number is the quarterly percentage change in the index.

Relevance : Rarely affects markets
Release Schedule : 1:30 (GMT); quarterly, two months after the reported quarter
Revision Schedule: Quarterly
Source of Report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of Release : http://www.abs.gov.au/ausstats/
AKA: Housing Price Index

The headline inflation gauge for Australia . Simply put, inflation reflects a decline in the purchasing power of the Aussie Dollar, where each Dollar buys fewer goods and services. In terms of measuring inflation, CPI is the most obvious way to quantify changes in purchasing power. The report tracks changes in the price of a basket of goods and services that is typically bought by a metropolitan Australian households. An increase in the index indicates that it takes more Australian Dollars to purchase this same set of basic consumer items.

Unlike most other countries, Australia publishes CPI quarterly instead of monthly, increasing the market impact of the report upon release. The headline number is released as the percentage change from the previous quarter or year.

Relevance : Tends to move markets on release
Release schedule : 1:30 (GMT), quarterly, one month after the quarter.
Revision schedule: Major benchmark revisions are made every 5 years
Source of report : Australian Bureau of Statistics
Web Address : http://www.abs.gov.au/
Address of release : http://www.abs.gov.au/ausstats/