The private sector wages bill rose 2.9 per cent in the September quarter to be 11 per cent higher through the year, partially reflecting more people in work but also a sharp acceleration in wages.all but guaranteed a quarter-point increase in the official interest rate to 3.1 per cent
Gains in wages were widespread, and all industries recorded a rise. The strongest were in sectors still recovering post COVID-19, including tourism and hospitality and arts and recreation . The uptick in mining helped overall inventories increase by 1.7 per cent, well above the market consensus of 1 per cent.
“Profits on an adjusted basis declined by a still sizeable 4.3 per cent, which was weaker than the 1.5 per cent we anticipated on this measure,” Westpac senior economist Andrew Hanlan wrote in a note to clients. Goldman Sachs has lowered its GDP forecast to 0.4 per cent, while CBA has pencilled in just 0.5 per cent growth. NAB currently has 0.6 per cent, which leave lave the economy 6.2 per cent higher through the year.
“Australia also stands to benefit from a cyclical rebound in China, and as a net exporter of commodities given elevated commodity prices.”