Economy

Inflation driven by government policy could force the RBA to squeeze Australia’s market sector, Westpac’s chief economist has warned.

While private sector investment picked up in September, economists warn that Australian businesses would need to invest more to keep the economy afloat in 2026.

Inflation exceeded expectations in October, but economists noted that the transition from quarterly to monthly indicators had clouded the outlook temporarily.

The private sector is having to “pick up the slack” as Australia’s unemployment rate is beginning to steadily climb as the government-led job boom slows down.

Wage growth was steady in the September quarter, with a slight slowdown in private sector growth offset by public sector resilience.

Andrew Leigh, Assistant Minister for Productivity, Competition, Charities and Treasury, has underscored the importance of Australia’s insolvency system in supporting productivity.

Consumer sentiment has surged back to optimistic territory for the first time since 2022, the Westpac-Melbourne Institute has found.

Without a substantial pick-up in productivity, the RBA warns that Australia’s economy could be “boxed in” to a period of lacklustre growth.

As the world continues to move towards its climate, sustainability and net-zero goals, businesses worldwide fail to aid the transition with weak climate transition plans.

The professional services firm is anticipating an increased level of M&A activity in contract mining based on its solid performance.