Aussie economy beats expectations in Q2
The Australian economy grew by 1.2 per cent in the second quarter of 201 - above the consensus forecast of 1 per cent, according to an economic update from Colonial First State Global Asset Management (CFSGAM).
The higher than expected growth comes after lacklustre growth of 0.9 per cent in the first quarter of 2011, which was revised down from 1.2 per cent after the effects of the natural disasters in Queensland were factored in.
CFSGAM put the rebound in the second quarter partly down to a 1 per cent increase in household final consumption spending and a 1.3 per cent rise in private sector capital spending.
The household savings rate fell to 10.5 per cent in the second quarter of 2011, which was still a high savings rate and indicative of a cautious attitude among consumers, according to CFSGAM. By comparison, the savings rate in the first quarter of 2011 was 11.7 per cent - although CFSGAM said that this figure was impacted by people saving the Government's flood-relief stimulus.
Australia's terms of trade rose to a record high of 5.4 per cent in the second quarter of 2011, which CFSGAM said would underpin the Australian economy's growth in the future.
"This gain in the terms of trade will provide further income flow into the economy in the quarters ahead, and will continue to be a strong support for the economy," the report said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
