Inventories in the Australian business cycle

This Economics Research Note examines inventories in the business cycle for Australia covering the period since the mid 1980s. The Australian Bureau of Statistics (ABS) defines inventories as all materials etc., work in progress and finished goods owned by a business, whether held at locations of the business or elsewhere. These items are usually held by businesses in anticipation of a product’s sale. Inventory investment is counted as an additional contribution to gross domestic product (GDP).Inventories; Business cycles

Developing a composite index of economic activity for Australia

This Economics Research Note outlines the development of a monthly Ai Group 'composite' index of economic activity for Australia. A simple weighted composite index is outlined, covering the three Ai Group performance indices as well proxies for the rural and mining sectors using available monthly data. This simple index shows that the economy has been generally in a slight contractionary phase in recent months, consistent with benign recent official data on the Australian economy.Business indices

Australian labour market flows over the business cycle

This paper analyses the behaviour of Australian labour market transition rates. Since the early 1980s the job finding rate has been significantly more volatile and pro-cyclical than the job loss rate and is strongly pro-cyclical. The economic downturns in the early 1980s and early 1990s were associated with an up to 10 percentage point decline in the average job finding rate. In comparison, the recent economic downturn was associated with a less significant decline in the job finding rate. During these periods the job loss rate has shown less significant volatility. The findings of this paper suggest job search activities of workers are potentially more relevant in explaining the volatility of labour market variables such as the unemployment rate and whether emerging skills shortages can be addressed. Moreover, policies that assist job search and skills development of workers are important, as is the search intensity of workers.labor market flows; job finding rate; job search

Sensitivity of scrap metal prices to global economic conditions

The scrap metal industry is part of the broader recycling industry that involves the collection,separation and processing of materials for manufacture into raw materials or new products. The demand for scrap metal is a derived demand – based on the demand for steel because scrap metal is an input to steel production. Steel demand in turn is based on demand by construction,manufacturing and other industrial sectors. Hence prices for scrap metal are a function of prices for steel. Scrap metal is an international commodity market – Australia is essentially a price taker and prices are set in global markets based on demand and supply factors. Prices of scrap metal in Australia are essentially set by the world price. Estimates of the sensitivity of Australian (or even global) scrap metal prices to global economic conditions are difficult to find. Nonetheless, one implicit estimate for Australia is that a 1 per cent fall in demand for scrap metal results in a fall in domestic scrap metal prices of 0.46 per cent. Nonetheless estimates of the price sensitivity of scrap metal to demand and global economic conditions can be highly volatile. Evidence suggests global scrap metal prices regularly halve and double over the period of 18-24 months.Scrap metal prices; global economic conditions

Inventories in the Australian business cycle

This Economics Research Note examines inventories in the business cycle for Australia covering the period since the mid 1980s. The Australian Bureau of Statistics (ABS) defines inventories as all materials etc., work in progress and finished goods owned by a business, whether held at locations of the business or elsewhere. These items are usually held by businesses in anticipation of a product’s sale. Inventory investment is counted as an additional contribution to gross domestic product (GDP)

Inventories in the Australian business cycle

This Economics Research Note examines inventories in the business cycle for Australia covering the period since the mid 1980s. The Australian Bureau of Statistics (ABS) defines inventories as all materials etc., work in progress and finished goods owned by a business, whether held at locations of the business or elsewhere. These items are usually held by businesses in anticipation of a product’s sale. Inventory investment is counted as an additional contribution to gross domestic product (GDP)

Sensitivity of scrap metal prices to global economic conditions

The scrap metal industry is part of the broader recycling industry that involves the collection,separation and processing of materials for manufacture into raw materials or new products. The demand for scrap metal is a derived demand – based on the demand for steel because scrap metal is an input to steel production. Steel demand in turn is based on demand by construction,manufacturing and other industrial sectors. Hence prices for scrap metal are a function of prices for steel. Scrap metal is an international commodity market – Australia is essentially a price taker and prices are set in global markets based on demand and supply factors. Prices of scrap metal in Australia are essentially set by the world price. Estimates of the sensitivity of Australian (or even global) scrap metal prices to global economic conditions are difficult to find. Nonetheless, one implicit estimate for Australia is that a 1 per cent fall in demand for scrap metal results in a fall in domestic scrap metal prices of 0.46 per cent. Nonetheless estimates of the price sensitivity of scrap metal to demand and global economic conditions can be highly volatile. Evidence suggests global scrap metal prices regularly halve and double over the period of 18-24 months

Developing a composite index of economic activity for Australia

This Economics Research Note outlines the development of a monthly Ai Group 'composite' index of economic activity for Australia. A simple weighted composite index is outlined, covering the three Ai Group performance indices as well proxies for the rural and mining sectors using available monthly data. This simple index shows that the economy has been generally in a slight contractionary phase in recent months, consistent with benign recent official data on the Australian economy

Developing a composite index of economic activity for Australia

This Economics Research Note outlines the development of a monthly Ai Group 'composite' index of economic activity for Australia. A simple weighted composite index is outlined, covering the three Ai Group performance indices as well proxies for the rural and mining sectors using available monthly data. This simple index shows that the economy has been generally in a slight contractionary phase in recent months, consistent with benign recent official data on the Australian economy