Skip to main content

Labour market to loosen, infrastructure outlays to ease

Data released this week showed that Australia's labour market remained tight in October, while wage growth accelerated to a 14-year high in Q3. However, with leading indicators suggesting that the labour market will soon slacken in earnest, we remain confident in our view that the RBA won't tighten policy any further. Elsewhere, the government announced that it would shelve funding for several public works in its pipeline. Although the move is unlikely to have a major impact on aggregate demand, it could help ease capacity pressures in the overstretched construction sector.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access