The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Wednesday, December 1, 2010

ABS makes huge upward revisions to household incomes

In the National Accounts today the ABS has made some very large upward revisions to household incomes. Household disposable income growth has accelerated to 6.4% yoy—it was 1.9% yoy previously—and real household disposable income growth has accelerated by 2.0% qoq to 4.3% yoy—it was -0.2% yoy previously. This will help boost consumption growth. Have a look at the impact of these revisions (blue line) in the following chart from ANZ's Paul Braddick on the household debt service ratio (ie, interest repayments as a share of disposable incomes)...

at 4:06 PM