Tourism bounces back
Services exports are firing back up, mainly in the shape of international students and tourism.
But overall, exports fell -5 per cent in April, as iron ore, coal, and natural gas exports all increasingly come under pressure.
Aussies are travelling overseas a bit more, but tourism into Australia is quietly absolutely rocketing back.
In fact, splitting out the exports and imports components - as Westpac has done below - shows that inbound Australian tourism is roaring back and on track to make a record contribution to exports imminently, probably by summer.
Source: Westpac
Alongside record international student applications, this will put further pressure on rental markets in Sydney (where most tourists go) and Melbourne (which is introducing a broader land tax on landlords).
CoreLogic rental report: record rents
Rental listings are already low across the capital cities for this time of year, and more landlords will look to switch to Airbnb given the costs and regulations being heaped on them this year, in turn further depleting the private rental stock.
Source: CoreLogic
Capital city rents are rising at a record pace in the capital cities, but regional markets are now slowing as migration reverts back towards the largest conurbations (in real time it feels like they could soon be negative).
Source: CoreLogic
The rental crush in Sydney will be exacerbated in the warmer summer months, when rental stock typically tightens.
This isn't helping the inflation or interest rate picture, of course, with the 3-year bond yield jumping to 3.89 per cent today, the highest level in 11 years.
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US initial jobless claims leapt from 232,000 to 261,000 in today's figures, a sign that layoffs are gradually gathering some pace.
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James Foster provides the detailed analysis, including some good news on lower import prices, here.
