The recent upturn of key factors in the USA economy and the resulting boost in confidence has for now quietened the doom-sayers in the business media and their predictions of a double dip recession. It appears that massive economy is finally showing solid and sustainable signs of growth in manufacturing and jobs. The only bad aspect to this situation is the inevitable increase in oil pricing and the way it has to feed into our economy’s inflation.

In case you have not been taking note, our public company profits reporting season is now coming to a close and the results are incredible. Although economists were expecting record mining industry profits, it is the high level of overall profits which have impressed with the construction industry posting the biggest numbers. The Australian Bureau of Statistics (ABS) says the most important number is that companies are planning to invest a total of $123 billion this financial year.

Just when we need it most, our exporters are earning a truckload of cash. This has not only turned around the previous slide in our balance of payments but, according to the latest figures, export earnings are now growing by nearly 6 percent whereas imports are expanding by less than half that.

Just three months ago the withdrawal of stimulus spending from Canberra was being described as causing a slump in overall spending. Well that prediction has now been proven wrong as the latest set of national accounts shows our economy strongly growing by 1.2 percent for the past 3 months and the present annual rate is 3.3 percent. Consumer spending is leading the charge with a very impressive monthly rise of 1.6 percent.

The housing industry is all set to lobby a new government armed with the fact that the vital new house building industry has not shown any growth for over 3 months. The industry’s association is quick to point out it is this situation which maintains pressure on the continuing rise in overall established house prices.

However, the very latest data is signaling a welcome upturn. While the east coast has had a recent boom in house prices, Western Australia’s capital city remains in the slump it went into a couple of years ago. Despite many predictions that the recent mining upturn has to impact on Perth’s house prices, recent sales continue to show the median is still dropping by over 2 percent.

Meanwhile, real estate data specialists, Australian Property Monitors, insist house prices in other capitals march on with Melbourne and Canberra leading.

The latest research into on-line share trading in Australia estimates the number has rocketed in the past two years to an incredible 650,000. The reason for this is put down to the growth in computing skills and a general downturn in private investors’ trust in fund managers.

There was a time when the uncertainty over a Federal Election caused a momentary downturn in most big ticket items, especially car sales. Not so now as last month’s new car sales figures clearly indicate the return to record numbers was undented by happenings in Canberra. In fact, August numbers were up a solid 12 percent and the industry is set to exceed a million sales again this year. As such the demand for car finance has improved.

The RBA announced on Tuesday 7 September that the cash rate will remain at 4.5%. This is now the fourth consecutive rate hold, thus providing home owners with further reprieve. The decision to hold rates is due to growth expected to be close to trend and inflation close to target. With the global outlook still uncertain it was a trigger for holding the rates. Economists still believe that the RBA will increase interest rate before the end of the year.