Australia: Wage growth stable but private sector slows

Growth will probably continue to be stronger in the countries of Central and Eastern Europe (CEE), Spain and the Nordic countries. Wage growth has risen steadily since mid-2017, but it is still well below the rates of over 4% seen between 2005 and 2009. Wage growth in the health and education sectors has strengthened the result of the December quarter, with mining wages too recovering but still nowhere near the rate enjoyed during the ten-year mining boom that began in the early 2000s. Widespread wage growth will not occur in the coming years if the Federal Reserve prematurely slows down the recovery in the name of the fight against potential inflation. Nominal wage growth since the recovery officially began in mid-2009 has been low and flat.

The company provides information, analysis and next-generation solutions to customers in the corporate, financial and government sectors, improving operational efficiency and providing insights that lead to informed and safe decisions. All other company and product names may be trademarks of their respective owners 2019 IHS Markit Ltd .. They may be trademarks of their respective owners 2018 IHS Markit Ltd .. With the Jobs index at its lowest level since 2010, small businesses continue to having difficulty finding workers in the competitive recruitment environment of 2018 “, said James Diffley, chief regional economist of IHS Markit. On the contrary, as more and more people and companies are looking for cheaper real estate options, investments in multi-family homes become more attractive. Real estate companies (including crowdfunding platforms) that have exercised restraint in the acquisition of overvalued assets in recent years will probably be in a good position to overcome any potential storms.

If a property is not overstated by debt and has solid foundations, it can continue to function as intended. Real estate is a illiquid business, so if the market starts to decline, demand is likely to decline. The real estate sector is a physical asset with intrinsic value and transactions take place at a much slower pace than stock trading. Furthermore, real estate can protect itself against inflation thanks to fixed mortgage interest rates and increased rent payments (even if rents increase at a slower rate). Investments in high-end real estate crowdfunding may receive lower demand from tenants and buyers, which could cause the crowdfunding platform to fail to meet initial projections.

At the end of the day, a recession does not mean all destiny and darkness. Furthermore, market downturns usually represent an opportunity for experienced real estate investors who have access to cash to acquire property at a discount on previous values ​​when the market cycle resets and more inventory is put online. On some fronts, the economy is constantly recovering from the Great Recession. Moreover, the troubled German economy will publish its first GDP estimate in the second quarter. VARIOUS CONSUMERS The Australian economy in recent years has outperformed its rich colleagues around the world and is in its 28th year of growth without recession.

Lower demand and rental income can ultimately lead to a reduction in property valuations, with consequent reductions in potential capital gains for investors. In an instinctive reaction, the markets seemed to focus on the fact that second-quarter growth was lower and industrial production was lacking. Japanese stock markets were closed for holidays. The health sector is becoming more and more attractive due to the stability of the cash flow (in particular in medical studies) and the growth of above-average health work (2 times that of other sectors), supported by demographic aging. Although it remains one of the strongest sectors for small business employment growth, construction has fallen below 100 for the second time in more than seven years.

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