Hi,
Trade balance swings to surprise surplus
Burgeoning terms of trade, rising paypackets, reducing unemployment, Nice... Wouldn't want to live anywhere else in the world right now!
Cheers,
Michael
Trade balance swings to surprise surplus
smh said:Australia's terms of trade - what it gets of exports compared to what it pays for imports - climbed 4.2 per cent in the first quarter alone and could rise 20 per cent this year.
That in turn will shower money on the economy via higher profits, investment, wages and tax receipts.
"Today's data provide a reminder of one of our long held themes which we continue to think will underpin above trend growth going forward," said Su-Lin Ong, a senior economist at RBC Capital Markets.
"The recovery in the terms of trade which began in late 2009 is accelerating and will deliver a strong boost to income and demand, assisting in some rotation of growth away from public spending to firmer private sector demand."
Consumers certainly seemed to be confident enough to splash on big-ticket items, with industry figures out Thursday showing sales of new vehicles hit a record for May.
Burgeoning terms of trade, rising paypackets, reducing unemployment, Nice... Wouldn't want to live anywhere else in the world right now!
Cheers,
Michael