RBA sends out mixed signals
THE Reserve Bank has painted a foreboding outlook for consumer spending as wages continue to grow slowly and household debt levels remain high.
But the central bank remains generally upbeat about the economy, with global conditions improving over 2017 and full- time employment in Australia growing at its fastest pace in a decade.
Minutes from the RBA’s board meeting this month show board members discussed sluggish consumption and weak wages growth. They said business conditions were positive, the outlook for nonmining business investment had further improved and the upswing in public infrastructure investment was also supporting economic growth. SHARES in Gloria Jean’s owner Retail Food Group have plunged to a nine- year low after the company warned that halfyear profits would likely fall by more than a third.
RFG shares fell as much as 69c, or 26 per cent, to $ 1.96 during trade yesterday – their lowest since August 2009.
The retailer’s shares have more than halved in value since allegations of mistreating franchisees first surfaced in media reports on December 9.
RFG says recent negative reports about its treatment of franchisees are partly to blame for a fall in sales behind the profit warning.
It says its Crust Pizza and Donut King brands have performed in line with forecasts, but Michel’s Patisserie, Brumby’s and Gloria Jean’s are trading below expectations.