We are getting the investment we need to see, ... It continues the theme of rebalancing in the economy: slowing consumer spending and housing being replaced with stronger exports and investment.
It's on the side of the ledger for a tightening bias. But with uncertainty about global growth and oil prices, the bank isn't likely to move rates anytime soon.
The continued improvement in services-sector activity is particularly impressive given the head winds restraining the consumer-related sectors.
Policymaker's toleration for inflation risks must be lower when the inflation rate is bumping around 3% per annum.
So we suspect that it won't take much to give the RBA that extra shove toward tightening.
Consumer caution persists and a weak housing sector remains a drag on overall services sector activity.
Signs of slowing growth and wages moving sideways rather than picking up, and of course the currency showing some signs of life, suggest that the Reserve Bank has probably administered enough monetary medicine for the time being.
There were new building regulations there that took effect from July 1 which are going to bump up the cost of new houses. It looks like there was a last minute rush to beat that which pumped up previous months and created this pothole for us to fall into in July.
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