Off the back of the latest Reserve Bank meeting, the following represents a snapshot of the latest economic news:
Australian Economy
- The Reserve Bank has forecast the economy to contract by 6% this year before rebounding by 5% in 2021
Company Reporting
- Only 75% of the ASX 200 Companies reported a net profit in the year to June 2020
- Full earnings were down 38% on aggregate
- Dividends were down 36%
- 53% of companies either cut their dividends or did not pay a dividend
Cash Rate
- The current cash rate of 0.25% has been left on hold and is expected to remain at that level for the foreseeable future
Australian Dollar
- The $A continued to climb and is up almost 5% this year
Consumer sentiment
- Consumer sentiment fell to 79.5% in August from 87.9% in July
Unemployment
- Unemployment rose to 7.5% in July the highest level in 22 years
Property
- Property prices declined for the fourth month
Should you have any questions with regard to how the economy will affect your investments and standard of living, please submit an online enquiry now or call Peter Quinn on +61 2 9580 9166. We also offer a FREE 45-minute consultation should you have other financial planning, taxation or superannuation issues you may wish to discuss.
The information in this document does not take into account your personal objectives, financial situation or needs, and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.