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Australia Spending Edges Up as Job Ads Fall and Permits Jump, With Rate Cuts Seen Later

Mixed signals from spending, jobs and prices steer expectations for a delayed RBA easing.

Overview

  • ABS’s Monthly Household Spending Indicator rose 0.2% in September, up 5.1% year on year, and now serves as the main gauge covering about 68% of consumption.
  • Gains were concentrated in goods such as food, petrol and health, while services were flat and travel and accommodation fell, pointing to a patchy demand picture.
  • ANZ job advertisements declined 2.2% in October for a fourth straight monthly drop and were 7.4% lower than a year earlier, signaling a softer labour market.
  • Building permits jumped 12% in September versus a 5% rise expected, rebounding from a 6% fall the month before.
  • After a recent inflation uptick, markets expect the RBA to forgo a cut this week and price only one further reduction, likely around May.