For any of you with concerns over the Australian economy, well, read on. This article takes reference from Peter Switzer’s latest editorial titled Shhh! Don't mention the damn good Aussie economy! (www.switzer.com.au) and uncovers a whole new side to the economy that is not widely publicised – the good side! (The ‘capital city home prices are up by 11.7%’ side.) And, for those of you who love economic data… well, you are really in for a treat! This article has all that, and so much more.

As we know all too well, Switzer is not one to just say something without backing it up with hard facts. So, we thought we would share with you some of the key points from his article. Starting with the fact that we are only hearing what certain influencers wants us to hear.

 Economists are saying we are due for two more interest rate cuts because of a struggling economy, and the press want us to believe the penalty rates decision will hurt the government. Then there are the alarmists that have spent the last two years talking about an income recession.

 But let us sit in the Switzer camp for a moment. As he so puts it, “why won’t a better economy, with lower unemployment, rising business as well as consumer confidence, trade surpluses and rising wages actually make the Turnbull team gain a few more likes?”

 According to Switzer, Deloitte Access Economics’ economist, Chris Richardson, told Peter on his TV show that a surge of national income is on the way. (That statement alone really questions any concern of income recession.)

 So let us forget about all the media hype and opinions pertaining to the economy for one minute and instead let us take a look at what we do know to be true – the facts. As per Switzer’s article (and many of our recent articles too for that matter), this is what we have seen of the economy, of late:

1.  The economy grew by 1.1% in the December quarter, after contracting 0.5% in the September quarter. Annual economic growth lifted from 1.9% to 2.4%.
2.  Unemployment fell from 5.8% to 5.7% with the January reading.
3.  The weekly ANZ/Roy Morgan consumer confidence rating rose by 6.1 points (4.7%) to a 6-week high of 119.1 in the week to February 26.
4.  The NAB business conditions index surged from +9.9 points to +16.2 points in January – a 9-year high. The business confidence index rose from +5.7 points to a 3-year high of +9.8 points.
5.  Economy-wide sales rose by 0.6% in the December quarter, after falling 0.1% in the September quarter. Annual growth of sales lifted to 2.7%, the biggest rise in five years.
6.  The CoreLogic Home Value Index of capital city home prices rose by 1.4% in February and was up 11.7% over the year.
7.  Private sector credit rose by 0.2% in January, after a 0.7% gain in December. Investor housing finance lifted 0.6% in January to stand 6.6% higher over the year – the fastest growth in 11 months.
8.  The Performance of Manufacturing index rose by 8.1 points to 59.3 in February – the strongest result since 2002. A reading above 50 indicates that the sector is expanding. This was the fifth consecutive month of expansion!
9.  Car sales are close to record highs.
10.  Our super funds have had another great year after the stock market has surged since February 2016 by a massive 22.7%!

 All valid points made by Switzer. Interestingly, he also points out that the economy has not experienced a recession for more than 25 years! Assuming we do not see one by September, he says, “this year we should be hailed as having the greatest growing economy of all time”.

 After looking at everything he points out, we have to agree. So, let us stop believing everything the newspapers or politicians tell us and let us make more informed decisions based on the truth. The facts. After all, with lower unemployment and rising consumer confidence… and 25 years without a recession…  it seems we do have a pretty darn good Aussie economy. Do we not?

 For property investors this paves the way for what could potentially be a solid year ahead. Especially when you add into the mix the fact that CoreLogic’s Home Value Index of capital city home prices rose by 1.4% in February, and was up 11.7% over the year. Those figures are huge!

 There you have it. With more good happening in our economy than some experts would like us to believe, just like the news, it really comes down to making sure you are well informed about every investment decision you make. Another reason why is pays to seek advice from industry professionals – such as the industry-leading experts at HSBP.

 For more information or to schedule an appointment, contact the HSBP team on0419 782 133.