Luci Ellis

In this insightful discussion, Luci Ellis, Westpac's Chief Economist known for her macroeconomic expertise, reveals the unexpected twists in Australia's inflation landscape. She delves into whether recent inflation spikes are temporary noise or longer-lasting trends. Luci also highlights surprises from recent CPI data and warns about the impact of regulated price increases on businesses. With a cautious outlook, she shares Westpac's projections for interest rates, signaling stability through 2026 unless inflation takes another turn.

Luci Ellis, Chief Economist at Westpac, dives into the intricate dynamics of global trade and macroeconomic forces, particularly the impact of the US and China on Australia. She reveals the underappreciated $9 billion success of Australia's software licensing exports, which are set to skyrocket by 2025. Luci emphasizes the need for Australia to diversify beyond iron ore, focusing on services and critical minerals as future growth areas. It's an enlightening discussion on navigating new economic landscapes!

Luci Ellis, Chief Economist at Westpac, dives into the intriguing world of business investment and productivity. She discusses how crucial investment in machines, software, and infrastructure boosts productivity. Confidence and demand are highlighted as key drivers for firms' investment decisions. Luci also explores the current investment landscape, noting shifts in the non-mining sector and the balancing act between AI and other tech investments. Her insights on data centres reveal their efficiency benefits without detracting from overall investment opportunities.

Luci Ellis, Westpac's Chief Economist, shares her insights into the Australian housing market. She discusses the surprising slowdown in Sydney and Melbourne while Brisbane, Adelaide, and Perth thrive. From the impact of interest rates on household sentiment to current low housing supply, Luci covers it all. She highlights government programs boosting first-home buyer confidence and emphasizes housing's economic importance. Lastly, Luci reveals Westpac's optimistic forecast for a 6% increase in house prices by 2026-27, contingent on stable interest rates.

Luci Ellis, Westpac's Chief Economist, dives into the vitality of household spending in the economy. She discusses the recent uptick in consumer spending and suggests we're past the peak of cost-of-living pressures, with inflation easing and real incomes recovering. Luci highlights the critical role of employment in supporting spending and explains how steady consumption is more reliable than volatile investments. Ultimately, she forecasts mid-2% growth in consumption if interest rates remain stable, painting a cautiously optimistic outlook.