Economic Update Video – December 2021

Our December update video takes you through key market movements so you can understand how the Australian economy is faring at the end of 2021.

December and summer have finally arrived, and you can almost hear the collective sigh of relief as 2021 draws to a close.

As November drew to a close, all eyes were on the new strain of the coronavirus, Omicron. Global shares fell sharply on fears that Omicron will spread more easily than other variants and existing vaccines may be less effective against it. Europe is already facing a spike in COVID cases and new lockdowns. Global oil prices fell 10% on Black Friday (November 26) on the threat of renewed border closures and reduced demand for air and road travel. Markets are likely to remain volatile until there is confirmation that a new vaccine can be created quickly, which experts believe is likely.

Elsewhere, the economic smoke signals were mixed. Australian company profits rose 4% in the September quarter, and 5.4% over the year, supported by government subsidies. Not surprisingly, the NAB business confidence index rose 11.2 points in October to 20.8, its second highest result on record. But wages growth is lagging, up 0.6% in the September quarter and 2.2% over the year. Unemployment increased from 4.6% to 5.2% in October while underemployment rose from 9.2% to 9.5%. While retail sales jumped 4.9% in October as lockdowns ended in some states, consumers remain jumpy. The ANZ-Roy Morgan consumer confidence rating fell over 2 points in October to 106.0. Adding to hip pocket nerves, the national average unleaded petrol price hit a record high of 170.4c a litre in November. The Aussie dollar fell 4c in November to US71.2c.

Whatever your plans for the holidays, we wish you and your family a happy festive season.

The information contained on this web page is for discussion purposes only, is of a factual nature and is not intended to constitute financial product advice. Any advice contained in this website or is General Advice and does not take into consideration your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. We believe the content of this site to be accurate, complete and current, however there are no warranties as to the accuracy, completeness or currency of the content. It is your responsibility to verify any information before relying on it. The content of this site may include technical inaccuracies or typographical errors. Capital 8 Financial Pty Ltd, Corporate Authorised Representative (ASIC No. 1243989) of LFG Financial Services Ltd ABN 28 101 927 413, AFSL 227096. As part of our continuing commitment to client service, the maintenance of client confidentiality and as required by law, LFG Financial Services Ltd complies with the Privacy Act 1988 and conforms with the LFG’s Privacy Policy. For further details please refer to the LFG’s Privacy Policy. We reserve the right to modify the content of this site from time to time.

Liked this article? Share it!