As we approach the end of another year, we are pleased to bring you the latest insights and updates to help you stay informed. In this edition, we delve into the recent economic trends and share valuable health and fitness advice from Max Martin, co-founder of iNform Health & Fitness Solutions.
Key Highlights:
GDP Growth: The Australian economy grew by a modest 0.3% in Q3 2024, bringing the annual growth rate to 0.8%. This growth was primarily driven by increased government spending, while private sector demand remained stagnant.
Household Consumption: Consumer spending was flat this quarter, despite a 0.8% increase in disposable incomes from Stage 3 tax cuts. This indicates a cautious approach by households, possibly saving more in uncertain times.
Business Investment: Business investment saw a slight decline, with non-residential construction activity being a significant drag. However, there was a positive uptick in dwelling investment, suggesting some resilience in the housing market.
US equity markets rallied in November, driven by the Republican election victory, viewed as a boost for US growth. Donald Trump’s win signalled support for inflationary policies like tariffs, tax cuts, and stricter borders. The Fed cut rates by 25 bps, citing easing labour markets and elevated inflation, while tech and AI sectors led stronger-than-expected US earnings.
In Europe, weak data highlighted ongoing economic struggles. Germany’s coalition government collapsed after Chancellor Scholz fired a key minister and called a vote of confidence, while bond yields in France sold off on budget tensions.
Despite financial markets climbing a “wall of worry” throughout 2024, share markets both locally and internationally are set to post strong gains throughout the calendar year.
State Performance:
New South Wales saw a 0.6% increase in state final demand, but annual growth remains weak at 0.4%.
Victoria recorded the weakest growth among states, with state final demand rising just 0.4%.
Queensland emerged as a front-runner with a 0.7% increase in state final demand, driven by cost-of-living relief measures.
Western Australia continues to show strength in household consumption and public demand, despite a decline in mining investment.
South Australia continues to perform strongly with state final demand lifting 0.8% qtr. As has been the case over much of the past year, the public sector remains almost entirely responsible for the state’s growth.
Looking Ahead:
As we move into 2025, the economic outlook remains cautious. The public sector's role in driving growth is expected to continue, but a more balanced contribution from the private sector will be crucial. We anticipate that easing inflation pressures and stable wage growth will provide a more favourable environment for both consumers and businesses.
Health and Fitness Insights with Max Martin:
We are thrilled to introduce Max Martin, co-founder of iNform Health & Fitness Solutions. With over 20 years of experience, Max specialises in helping individuals achieve sustainable exercise habits and better health. Max is an Accredited Exercise Scientist and Physiologist, with expertise in musculoskeletal rehabilitation and healthy aging. According to Max, time, health, and wealth are our three key assets. To enjoy your retirement, it’s just as important to plan for your health as it is for your finances. Regardless of age, Max encourages everyone to invest in long-term health and fitness goals.
Muscle fitness becomes increasingly important as we age, often more so than cardio-respiratory fitness. Building strength is key to maintaining independence and handling daily activities. The same lifestyle choices that keep your heart healthy also protect your brain, so adopting heart-healthy habits supports cognitive health too.
At Synergy Private Wealth, we aim to provide holistic guidance that enhances not only your financial well-being but also your overall quality of life. We believe that balancing wealth, health, and time is essential for a fulfilling and prosperous future. Should you wish to discuss your health and fitness goals, Max is located in Norwood and can be contacted on 08 8431 2111.
Office closure:
With Santa due to arrive shortly, our office will be closed from close of business on the 19th of December and will reopen on the 13th of January. Thank you for your continued trust and partnership. From all of us at Synergy Private Wealth, we wish you a Merry Christmas and a prosperous New Year.