As winter sets in and the end of the financial year approaches, it’s a good chance to spend some time tidying up and reviewing your finances.
Many factors have affected local markets and the Australian dollar:
– Concerns that the Reserve Bank may lift interest rates this month (which it did)
– Drama over the US debt ceiling
– The worry that the US Treasury may run out of cash
The dollar is at its lowest level in six months, at just under US65 cents, while the ASX200 ended the month nearly 3% down thanks also to weaker commodity prices.
Energy and mining stocks led the falls. Brent Crude was down 7.5% for the month while iron ore prices hit a six-month low.
Inflation rose 6.8% in the 12 months to April, up from 6.3% in March and the number of housing approvals nosedived in April, down 8.1% after a 1.0% fall in March.
The rising prices have continued to dent consumer confidence.
The ANZ-Roy Morgan Consumer Confidence survey has now spent 13 straight weeks at its lowest mark since the 1990-1991 recession. The survey reveals that only 7% of Australians expect good times ahead for the Australian economy in the next 12 months.
With less money to go around, retail trade has plateaued over the past six months.
The latest unemployment figures show a slight increase to 3.7% in April and a slight decrease in the participation rate.
Give us a call on 1300 78 55 77 if you’d like a review or tidy up of your finances.