Housing starts fall in third quarter: Midday Roundup

Housing starts fell by a larger than expected amount during the September quarter, according to the latest figures from the Australian Bureau of Statistics.

The data released shows starts fell by a seasonally adjusted 6.8% in the quarter ending September 30, to just 35,672 units.

That comes after the June quarter result was revised upwards to 38,290. Annually, starts are down 11.5% compared to the same corresponding period in 2010.

Analysts had expected starts to rise by 2% during the September quarter.

Business finance rises in October

The number of commercial finance commitments increased in October, according to figures from the ABS.

Commercial finance commitments rose by 16.5% to $36.3 billion, up from $31.15 billion in September.

Total personal finance commitments rose 5.2% to $7.3 billion, while lease finance was down 2.4% to $417 million, compared to $427 million in the previous month.

Housing finance for owner occupation fell 1.2% to $14.37 billion.

Executives say high dollar hurting business

The latest Business Spectator GA Research Pulse Survey has found that out of 128 chief executives who run companies with more than $100 million in turnover, 78% believe the rising dollar has had a negative impact on business.

The results also show 48% believe it has had a negative impact on their own companies, and 54% believe it has impacted on their industry.

One of five CEOs surveyed said they had changed business strategies and 22% said they had changed their hedging strategies.

However, the CEO scorecard of the Government’s handling of the economy increased from 2.6 to 3.3 out of 10. 60% of CEOs surveyed are optimistic about the prospects for their own companies in the next year.

Shares fall 1.5% on Moody’s review of Eurozone

The Australian sharemarket has fallen 1.5% this morning after Moody’s warned it would review the credit ratings of European nations in the New Year.

The benchmark S&P/ASX200 index was down 57 points or 1.4% to 4195.3 at 12.10 AEST, while the Australian dollar weakened to $US1.01c.

AMP shares fell 1.59% to $4.34 as Commonwealth Bank shares lost 1.3% to $49.18. Westpac lost 2.16% to $20.83 as NAB fell 1.81% to $23.92.

In the United States, the Dow Jones Industrial Average fell 1.3% or 162 points to 12,021.4.

Moody’s flags EU credit review in early 2012

Meanwhile, ratings agency Moody’s has flagged a first-quarter review of the credit ratings of all EU countries, suggesting last week’s meeting of European meetings failed to deliver “decisive policy measures” to deal with the Eurozone crisis.

It said “The absence of measures to stabilise credit markets over the short-term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat.”

“In view of the continued absence of decisive policy measures despite the recent euro area summit, Moody’s Investors Service is reiterating its intention to revisit the ratings of all EU sovereigns during the first quarter of 2012.”

Slowdown in major developed economies likely: OECD

The Organisation for Economic Co-operation and Development says a composite index of leading indicators “point to a slowdown in economic activity in all major economies but with some variation”.

Its December report says indicators for the US, China and Canada “continue pointing to slowdowns in economic activity around long-term trends but with only marginal declines compared to last month”.

The OECD added that indicators for the Eurozone “continue pointing strongly to economic activity falling below long-term trend.”