The Reserve Bank of Australia, in the released minutes of the May meeting of its Board this week, states that overall, the pace of economic activity had increased over the previous six months, with the economy looking to have grown at around its long-run average pace in the March quarter, driven by especially strong growth of exports. With this pace of export growth unlikely to be sustained, output growth is expected to be somewhat slower over the next few quarters says.
The housing market continued to be an area of strength in the economy, stated Australia’s central Bank. Although the most recent data had indicated a decline, dwelling approvals remained at high levels and the flow-on to commencements pointed to strong growth in dwelling investment in the first half of 2014.
Across Australia, housing price inflation had eased somewhat in recent months from the earlier rapid pace, with auction clearance rates edging back and housing loan approvals stabilising. Other indicators, such as turnover, first home owner grants and loan approvals for new housing, remained consistent with strong demand for both established and new housing.
Source: RBA
