THE NEWS WRAP: Consumer spending up, but Australians’ savings put at risk as a result

Uncertainty over the Federal Election outcome has dragged on into a third week, but Australia’s economy doesn’t seem to have been unduly affected.

As Julia Gillard and Tony Abbott wait to find out who the three independent MPs will back, with a decision expected today by some pundits, the Australian dollar rose to its highest level against its US counterpart since mid-August, at US 91.7 cents. 

The result comes on the back of strong trade and economic data late last week. Consumer spending is also up, but Australians’ savings are being put at risk as a result, according to new research.

Online job ads on the rise

Another area of optimism for start-ups is the jobs market, with unemployment set to edge downwards when August figures are released.

Employers are also going online in their search for new staff, according to the same Fairfax story.

Mortgages under threat?

Start-up businesses that use their houses for collateral when raising funds could be hit by higher mortgage rates, according to Citi. A report by the finance firm said that new liquidity rules could force rates upwards.

Large company execs face pay squeeze

Small businesses owners dream of large pay packets, but business’ highest earners are under pressure from shareholders to explain their mushrooming salaries.