Latest Hunter Economic Update

Thursday, 21 July 2011

MEDIA RELEASE

Comments: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , Principal Research Fellow HVRF

Hunter economic activity shaped by resource boom

The Australian economy is the envy of most of the developed world and the Hunter economy is one of the sweet spots within this national picture, so why the gloom? The latest HVRF Hunter Economic Indicators provides some insight.

The Region’s economic activity continues to be sustained by high commodity prices and the related surge in investment, according to HVRF Principal Research Fellow Simon Deeming. 

“Only another global crisis is likely to interrupt the momentum in resources and resource-related expenditure across the Region.  However, for many other industries, this is a ‘Clayton’s’ boom – it does not feel like a boom. The latest data for consumer confidence in the regional outlook is soft, and retail and construction activity is weaker.” 

On the whole, the regional economy remains robust, but has clearly slowed in the face of higher interest rates.  Ongoing resources investment is independent of this interest rate policy, being fueled by demand and capital from overseas, but for the other sectors, interest rate policy, influenced by the Reserve Bank of Australia’s view of national economic growth, will heavily influence their prospects, gloomy or otherwise.

Hear Simon present the full results from the Hunter Region Economic Indicators at the Foundation’s breakfast tomorrow morning.

ENDS