210 - Wage Growth Slows, Consumer Sentiment Lifts...but for How Long?

The Dismal Science

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This week on The Dismal Science, we examine the latest economic data releases, including wage growth figures, consumer and business sentiment surveys, and the AICD's Director Sentiment Index.

The Wage Price Index showed annual growth slowing to 3.5%, a welcome development for the RBA in its fight against inflation. But with productivity growth stalling, will this be enough to see interest rate cuts in the near future?

Consumer sentiment surged in November, reaching its highest level since the first half of 2022, fuelled by optimism about the interest rate outlook and a strong labor market.

However, this optimism was tempered by the results of the US election, with sentiment declining sharply following the outcome.

Businesses also reported improved confidence in October, but the AICD's survey of directors painted a much bleaker picture, with concerns about inflation, interest rates, and a looming recession weighing heavily on sentiment.

Will the recent positive economic data prove to be a fleeting reprieve, or are we finally turning a corner?

Read more from Mark on the AICD website: https://www.aicd.com.au/news-media/economic-weekly.html

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