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News.com.au
an hour ago
- Business
- News.com.au
56 Aus regions where mortgage arrears are worse than average
Alarming new figures behind Australia's mortgage crisis show 56 regions are experiencing distress levels exceeding the national average, covering hundreds of suburbs. See the list. Alarming new figures behind Australia's mortgage crisis show 56 regions are experiencing distress levels exceeding the national average, covering hundreds of suburbs. The latest S & P Market Overview for the first quarter of 2025 found the national average for home loan repayment arrears of more than a month was 0.97 per cent as of March – a figure exceeded by 56 SA4 regions. Scroll down for full list of SA4 regions with arrears exceeding national average This as four states/territories also topped the national arrears level led by Victoria's 1.17pc, Northern Territory 1.01pc, and New South Wales 1.07pc with Australian Capital Territory on 1.29pc off a smaller, more volatile base; while four others were below national average – Tasmania (0.58pc), South Australia (0.74pc), Queensland (0.71pc), and Western Australia (0.86pc). There was a silver lining thanks to rate cuts put in by the Reserve Bank, only one of which would have impacted the data. S & P Global said 'arrears are likely to remain low with interest rate cuts in play and inflation coming down'. 'Heightened global uncertainty and its effect on global trade and supply chains, will have downstream impacts on business and consumer confidence, affecting investment and consumer spending decisions.' But it added 'households are likely to behave more cautiously, electing to save or paydown mortgages over spending. This will help to keep arrears low.' Zac Efron's Aussie long lunch haunt is on the market The top 10 worst postcodes for mortgage arrears were named, shockingly half of them were in Victoria – with the worst about three times national average. 1. Cragieburn, VIC (3064): 3.10pc 2. Caroline Springs, VIC (3023): 2.81pc 3. Bateau Bay, NSW (2261): 2.78pc 4. Narre Warren, VIC (3805): 2.59pc 5. Liverpool, NSW (2170): 2.44pc 6. Carrara, QLD (4211): 2.20pc 7. Pakenham, VIC (3810): 2.11pc 8. Melton South, VIC (3338): 2.07pc 9. Blacktown, NSW (2148): 2.02pc 10. Campbelltown, NSW (2560): 1.94pc S&P Global does expect unemployment to rise this year which will impact arrears levels, but forecasts it will remain below prepandemic levels. 'Interest rate cuts will ease debt serviceability pressures. But we believe they won't make a material difference to overall arrear levels because they're likely to be gradual. These factors will enable most households to remain current on their mortgages.' VICTORIA Melbourne – North West, VIC: 2.88pc Shepparton, VIC: 2.63pc Melbourne – South East, VIC: 2.04pc Melbourne – North East, VIC: 2.03pc Latrobe – Gippsland, VIC: 2.01pc Ballarat, Vic: 1.94pc Melbourne – West, Vic: 1.86pc Melbourne – Outer East, Vic: 1.77pc Hume, Vic: 1.69pc Mornington Peninsula, Vic: 1.63pc Geelong, Vic: 1.54pc Warrnambool and South West Vic, Vic: 1.51pc Melbourne – Inner South, Vic: 1.24pc Melbourne – Inner, Vic: 1.06pc NSW Riverina, NSW: 2.77pc Sydney – South West, NSW: 2.05pc Sydney – Inner South West, NSW: 2.00pc Richmond – Tweed, NSW: 1.89pc Sydney – Parramatta, NSW: 1.73pc Sydney – Outer South West, NSW: 1.72pc Central Coast, NSW: 1.68pc Capital Region, NSW: 1.60pc Southern Highlands and Shoalhaven, NSW: 1.57pc Sydney – Blacktown, NSW: 1.56pc Hunter Valley exc Newcastle, NSW: 1.55pc Sydney – Outer West and Blue Mountains, NSW: 1.49pc Sydney – Baulkham Hills and Hawkesbury, NSW: 1.42pc Sydney – Inner West, NSW: 1.42pc Far West and Orana, NSW: 1.36pc Central West, NSW: 1.31pc Illawarra, NSW: 1.29pc Mid North Coast, NSW: 1.22pc Coffs Harbour – Grafton, NSW: 1.21pc Far West and Orana, NSW: 1.05pc QLD Queensland – Outback, Qld: 2.16pc Logan – Beaudesert, Qld: 1.54pc Mackay, Qld: 1.31pc Sunshine Coast, Qld: 1.24pc Fitzroy, Qld: 1.15pc Cairns, Qld: 1.13pc Gold Coast, Qld: 1.11pc Moreton Bay – North, Qld: 1.10pc Townsville, Qld: 1.05pc Wide Bay, Qld: 1.04pc SA: Barossa – Yorke – Mid North, SA: 1.42pc Adelaide – North, SA: 1.35pc South Australia – South East, SA: 1.27pc Adelaide – Central and Hills, SA: 1.11pc WA: Perth – North East, WA: 1.26pc Western Australia – Wheat Belt, WA: 1.26pc Mandurah, WA: 1.23pc Perth – North West, WA: 1.14pc Perth – South West, WA: 1.13pc TAS: Hobart, Tas: 1.26pc West and North West Tas, Tas: 1.13pc NT Northern Territory – Outback, NT: 2.08pc Darwin, NT: 1.04pc ACT: Australian Capital Territory, ACT: 1.29pc
Zawya
a day ago
- Business
- Zawya
Israeli credit rating unlikely to get upgrade during Gaza war, S&P official says
JERUSALEM: Israel's credit rating is unlikely to be upgraded until the war in Gaza ends, since the conflict weighs on the Israeli economy and its fiscal position, S&P Global Ratings Director Maxim Rybnikov said on Tuesday. Any widening of the conflict to Iran would prompt a ratings downgrade, but that is not S&P's baseline scenario, Rybnikov said. S&P earlier this month affirmed Israel's long- and short-term foreign and local currency sovereign credit ratings at "A/A-1" and maintained a "negative" outlook. "For the outlook side, it's all about security risks and how this is going to unfold," Rybnikov told the Israel Democracy Institute's annual economic conference. "The key downside triggers are, first of all, military conflicts hampering some of Israel's characteristics, such as economic growth, fiscal position and balance of payments more than we currently anticipate." Even in the medium term, higher defence spending is expected to put pressure on Israel's fiscal position, with projections of a budget deficit of 5% in 2027 and 4.2% in 2028, Rybnikov said. He said the war that began in October 2023 had already lasted longer than initially anticipated. "We don't know ... the way forward and how the war is going to end, and for us, it certainly presents risks, especially in a scenario where there's a more significant escalation," he said. Yet, Israel's outlook could move back to "stable" in the event of a reduced likelihood of military escalation and an easing in broader security risks. "We still expect some stabilisation to happen over the medium term. What forms and how quickly it will take is still uncertain," Rybnikov said. Globally, he said there has been a "seismic shift" in U.S. trade policies and S&P assumes 25% tariffs on items such as water, steel, semiconductors and aluminum in addition to a 10% across the board tariff. But he does not expect a U.S. recession from a slowdown in growth in the U.S. and China.
Reuters
2 days ago
- Business
- Reuters
Israeli credit rating unlikely to get upgrade during Gaza war, S&P official says
JERUSALEM, May 27 (Reuters) - Israel's credit rating is unlikely to be upgraded until the war in Gaza ends, since the conflict weighs on the Israeli economy and its fiscal position, S&P Global Ratings Director Maxim Rybnikov said on Tuesday. Any widening of the conflict to Iran would prompt a ratings downgrade, but that is not S&P's baseline scenario, Rybnikov said. S&P earlier this month affirmed Israel's long- and short-term foreign and local currency sovereign credit ratings at "A/A-1" and maintained a "negative" outlook. "For the outlook side, it's all about security risks and how this is going to unfold," Rybnikov told the Israel Democracy Institute's annual economic conference. "The key downside triggers are, first of all, military conflicts hampering some of Israel's characteristics, such as economic growth, fiscal position and balance of payments more than we currently anticipate." Even in the medium term, higher defence spending is expected to put pressure on Israel's fiscal position, with projections of a budget deficit of 5% in 2027 and 4.2% in 2028, Rybnikov said. He said the war that began in October 2023 had already lasted longer than initially anticipated. "We don't know ... the way forward and how the war is going to end, and for us, it certainly presents risks, especially in a scenario where there's a more significant escalation," he said. Yet, Israel's outlook could move back to "stable" in the event of a reduced likelihood of military escalation and an easing in broader security risks. "We still expect some stabilisation to happen over the medium term. What forms and how quickly it will take is still uncertain," Rybnikov said. Globally, he said there has been a "seismic shift" in U.S. trade policies and S&P assumes 25% tariffs on items such as water, steel, semiconductors and aluminum in addition to a 10% across the board tariff. But he does not expect a U.S. recession from a slowdown in growth in the U.S. and China. "The numbers ... are very uncertain and there (are) significant downside risks," Rybnikov said.
Reuters
7 days ago
- Business
- Reuters
US business activity improves in May; inflation poised to accelerate sharply
WASHINGTON, May 22 (Reuters) - U.S. business activity picked up in May amid a truce in the trade war between Washington and China, but President Donald Trump's sweeping tariffs on imported goods raised prices for companies and consumers. The survey from S&P Global on Thursday hinted at an acceleration in inflation in the coming months and a labor market slowdown, a reminder that stagflation remained a risk for the economy despite steps by the Trump administration to de-escalate trade tensions with Beijing. Manufacturing delivery delays were the longest in 31 months while exports of services, including spending by foreign visitors in the U.S., dropped at the sharpest pace since the COVID-19 pandemic lockdowns in early 2020. There has been a sharp drop in tourism and lower airline ticket sales and hotel and motel bookings since Trump launched an immigration crackdown and repeatedly expressed his desire to make Canada the 51st U.S. state and acquire Greenland. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 52.1 this month from 50.6 in April. A reading above 50 indicates expansion in the private sector. The survey's flash manufacturing PMI increased to 52.3 from 50.2 in the prior month. Economists polled by Reuters had forecast the manufacturing PMI would dip to 50.1. Its flash services PMI rose to 52.3 from 50.8 in April. Economists had forecast the services PMI would be unchanged. The survey was conducted in the May 12-21 period, after the White House announced a deal to slash duties on imports from China to 30% from 145% for 90 days. "At least some of the upturn in May can be linked to companies and their customers seeking to front-run further possible tariff-related issues, most notably the potential for future tariff hikes after the 90-day pause lapses in July," said Chris Williamson, chief business economist at S&P Global Market Intelligence. Williamson noted that input inventories had surged to an 18-year high because of worries about tariff-related supply shortages and price increases. The improvement in the PMI aligns with economists' expectations for a rebound in economic activity this quarter after gross domestic product contracted at a 0.3% annualized rate in the first quarter. Though risks of a recession have diminished, the economy remains in danger of experiencing a period of tepid growth and high inflation, which could complicate matters for the Federal Reserve. Economists expect GDP growth to slow to below 1% this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5%. The economy grew 2.8% in 2024, while the so-called core PCE inflation increased 2.8%. Though business sentiment improved this month, it remained slightly below the 2024 average due to lingering worries about the negative effects of the Trump administration's policies, including spending cuts. S&P Global survey's measure of new orders received by businesses increased to 52.4 from 51.7 in April, mostly driven by manufacturing. A measure of prices paid by businesses for inputs vaulted to 63.4, the highest level since November 2022, from 58.5 in April. Businesses passed on the higher costs to consumers. The survey's gauge of prices charged by businesses for goods and services jumped to 59.3, the highest since August 2022, from 54.0 in April. "The overall rise in prices charged for goods and services ... is indicative of consumer price inflation moving sharply higher," Williamson said. A gauge of employment dropped to 49.5 from 50.2 last month, "primarily reflecting concerns over future demand prospects but also in response to worries over rising costs and labor shortages."
Bloomberg
7 days ago
- Business
- Bloomberg
US Business Activity, Sentiment Improve as Tariff Anxiety Eases
US business activity and output expectations improved this month as trade-related anxiety eased even as price pressures continued to mount due to tariffs. The S&P Global flash May composite index of output rose 1.5 points to 52.1 after sliding a month earlier to the lowest since 2023, according to data released Thursday. Figures above 50 indicate growth, and the acceleration reflected expansion at both manufacturers and services providers.
