The ABS just released their wage price index data to September 2014. The trend shows slowing growth, and for many, after inflation, real wages are static or falling. Different industries are growing a different rates. This looks like a very different scenario compared with from the mid 2000’s when house prices were growing alongside wages. This time, wages and house prices are more disconnected. Another reason why house price growth at current levels is unsustainable.
QUARTERLY CHANGE (JUN QTR 2014 TO SEP QTR 2014)
- The trend index and the seasonally adjusted index for Australia rose 0.6% in the September quarter 2014.
- The Private sector rose 0.6%, seasonally adjusted, and the Public sector rose 0.5%.
- The rises in indexes at the industry level (in original terms) ranged from 0.2% for Mining to 1.9% for Accommodation and food services.
ANNUAL CHANGE (SEP QTR 2013 TO SEP QTR 2014)
- The trend index for Australia rose 2.5% through the year to the September quarter 2014, and the seasonally adjusted index rose 2.6%.
- Rises in the original indexes through the year to the September quarter 2014 at the industry level ranged from 1.9% for Other services to 3.6% for Arts and recreation services.
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