Hunter Economic Update May 2010

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Regional economic indicators mixed

While the Hunter Regional economy came through the Global Financial Crisis (GFC) with limited impacts, the latest HVRF Hunter Region Economic Indicators (HREI) are mixed, according to HVRF Director of Research Dr Andrew Searles.

“The Region’s labour force remains robust and selected indicators of consumer and business activity are strong, while indicators of consumer and business confidence have weakened,” Dr Searles said. “Despite reports of continued economic uncertainty overseas, International Monetary Fund forecasts for Australia, and our trading partners in both the developed and developing world, are generally optimistic.”

The HREI shows that new residential housing approvals and new passenger vehicle registrations have both risen since the same period in 2009. Although this is a good sign, Dr Searles cautions that the annual rises are partly due to the comparison period last year falling during the worst of the GFC.

Deterioration in consumer confidence and business expectations for the local economy in the last quarter are probably associated with uncertainty about European and US economies. Questions over the strength of growth in China would also have affected confidence, Dr Searles said.

Hear Andrew present the full results from the Hunter Region Economic Indicators at the HVRF’s breakfast tomorrow morning. The second annual issue of the HVRF’s Hunter Region Residential Market Outlook will also be launched at the breakfast.

For comments call Dr Andrew Searles on (02) 4969 4566 ext 525.
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