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, October 5, 2011

Citigroup: "The End of the World is Not Nigh" for Australian Consumers

From Citi:

"The retail sales data shows that household consumption to date in Q3 was not as adversely affected by events of the past few months as some of the leading indicators suggested. For the RBA, this means that the CPI and labour force data may have to exhibit a clearer pattern of softening outside of any global deterioration to deliver a November interest rate cut or that any imminent rate cut could be by 25 bps rather than 50 bps.

Retail sales data surprises on the upside for the second consecutive month. Retail sales increased by 0.6% in August, well ahead of the consensus estimate of 0.2%. In addition, the July 0.5% increase was revised up to 0.6%. These changes pushed the yearly growth rate to 2.1% from a revised 1.5% in July and stabilised the trend growth rate from falling further (Figure 2). The better than expected results show that Australian consumers do not share the pessimism of consumers in some other nations."