Finance Insider

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The Westpac-Melbourne Institute Leading Index suggests the economy is on the rebound as commodity and equity prices rally. The index grew by 4.2 per cent in February up from 2.7 per cent recorded in September and much higher than the long term trend rate of 2.8 per cent. The index estimates the pace of economic activity for the next one to three quarters. Matthew Hassan senior economist at Westpac says the results suggest economic momentum has clearly lifted since June 2012.

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Mark Butler, Minister for Housing and Homelessness says housing affordability is a key concern for many Australian families. Recently Mr. Butler met with some Adelaide tenants who are part of a government backed scheme that provides affordable rents. The scheme provides incentives to build an additional 1000 homes across the country by next June.

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A new report from Deutsche Bank has confirmed what many people have long suspected, Australians are paying some of the highest prices on the planet. The report takes prices for a number of goods and services and compares them across many cities and countries around the world. People who live in Melbourne and Sydney pay nearly 40 per cent more to go the movies compared with people living in Paris or Manhattan. A two litre bottle of Coke bought in one of Australia’s two major cities costs more than 50 per cent more than if it is bought in Auckland or Berlin.

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ANZ has released its first half results and reported a 10 per cent increase in first half cash earnings and will pay a dividend in excess of forecasts. ANZ earned $3.18 billion which came in ahead of an expected $3.13 billion analysts estimate. ANZ cited solid performance across its institutional, retail and international business units. The lender says it will increase its dividend by 11 per cent and would seek to increase its dividend payouts as part of a drive to become more efficient.

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Despite the recovery in house prices nationally, the Australian property market is paradoxically witnessing a decline in new home sales for the first time in four months, According to data from the Housing Industry Association, new home sales across the country fell by 5.3 per cent in February driven by steep declines in South Australia and Victoria. The New Home Sales report polls Australia’s largest builders and found that unit sales had fallen by 11 per cent whilst sales of detached homes had declined by 4 per cent.

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