New Market Report Now Available: Australia Business Forecast Report Q3 2014

Core Views:

* Economic activity in Australia remains weak, with the performance indices for manufacturing, services and construction all showing signs of further contraction. The pull-back in mining investment, as a result of a dimming outlook for iron ore and coal, continues to drive this dynamic. Meanwhile, other sectors are unable to pick-up the slack as narrowing profit margins dampen businesses' appetite to invest and hire. These trends fuel our downbeat outlook for the economy and the currency, projecting GDP growth to come in at 2.0% for 2014 and the currency to weaken to USD0.8200/AUD by the end of the year.
* We believe that the housing market remains precarious, as housing affordability continues to edge to new lows. Our downbeat outlook for the Australian job market, which leads us to forecast unemployment to edge up to 6.5% by the end-2014, would inevitably weigh on the demand for credit and by extension, house prices. Indeed, major Australian banks have expressed caution towards the domestic housing market during their H114 earning announcements, .
* The Liberal-National coalition's popularity has been on the decline since winning the elections in September 2013. In addition, the government needs to secure support from several minority parties or even the opposition Australian Labor party (ALP), which could dilute any reform efforts from the government. In particular, we highlight a possible policy vacuum with regards to how the country will reduce its carbon emissions, as the coalition continues to push for its alternative scheme, Direct Action, and the repeal of the carbon tax.
* With economic weakness to become more evident in H214, we forecast the Reserve Bank of Australia (RBA) cut its by 25 basis points to bring the cash rate to 2.00% by end-2014. This should weaken the Australian dollar in aid of local manufacturers, as the unit has remained quite strong on the back of market expectations of possible interest rate hikes.

Full Report Details at
- http://www.fastmr.com/prod/829871_australia_business_forecast_report_q3_2014.aspx?afid=301

Major Forecast...

The Australia Business Forecast Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Australia and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market..

An influential new analysis of Australia's economic, political and financial prospects through end-2017, just published by award-winning forecasters, Business Monitor International (BMI).

Key Uses

* Forecast the pace and stability of Australia's economic and industry growth through end-2017.
* Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
* Assess the critical shortcomings of the business environment that pose hidden barriers and costs to corporate profitability.

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