《AFN Daily Business Update》New vehicle sales slumped 8.9%

1

Businesses unable to hike prices: survey

Many businesses were forced to lock in their discounts in April as wary consumers turned thrifty, a services industry survey suggests.

The Ai Group’s Performance of Services Index released on Friday recorded a fourth straight month of contraction in the Australian services sector.

“The number of services businesses able to increase prices has fallen in recent months as competition from overseas sellers has increased, wages growth has slowed and consumer discretionary spending has tightened,” the Ai Group report said.

The PSI, compiled from responses of about 200 companies, noted an acceleration in the slide in selling prices during the month to a record low.

“This latest fall in the selling price index has been sharper and faster than the period of growth seen in 2018; it may have wiped out any pricing gains realised in that time,” the report said.

2

New vehicle sales slumped 8.9% in April

New vehicle sales slumped again in April as part of an ongoing trend tied to housing market woes, tightening of loans, drought, floods and the upcoming Federal election.

The Federal Chamber of Automotive Industries’ figures showed an 8.9 per cent decrease in sales for April from the same period last year.

“The results for April are in line with trends for year-to-date 2019. We have seen a decrease of around eight per cent across the first four months of the year,” FCAI’s chief executive Tony Weber said in a statement on Friday.

3

Building approvals fell by 15.5% in March

Approvals for the construction of new homes dropped by a seasonally adjusted 15.5 per cent in March, driven by a decrease in units and townhouses.

Approvals for private sector houses fell 3.2 per cent, while the “other dwellings” category, which includes apartment blocks and townhouses, plunged 30.6 per cent.

Over the 12 months to March, total building approvals for dwellings fell by a seasonally adjusted 27.3 per cent, the Australian Bureau of Statistics said on Friday.

4

ResMed shares gain as profit lifts 15%

Medical products company ResMed says it lifted revenue in the three months ended March 31 by 12 per cent, to $US662.2 million ($A952.2 m).

Resmed said it made $US157 million ($224m) in profit, up 15 per cent from the same period in 2018.

The board of directors declared a quarterly cash dividend of 37 US cents per share.

At 1029 AEST, Resmed shares were up 92 cents, or 6.25 per cent, to $15.74, their highest level since January.

The San Diego-based, ASX-listed company produces products to treat sleep disorders.

5

Macquarie lifts profit but outlook softens

Macquarie Group beat full-year profit guidance but the company’s share price has slumped in early trade after it warned of a more subdued performance over the next 12 months.

Macquarie announced a 17 per cent lift in full-year net profit to a record $2.98 billion on Friday, but its share price dipped 5.65 per cent to $128.50.

Net profit from the Macquarie Capital unit rose 89 per cent to $1.35 billion for the 12 months to March 31, while net profit from commodities and global markets jumped 65 per cent to $1.51 billion as the group’s soaring market-facing unit offset a slight dip across its annuity-style businesses.

Combined profit from Macquarie Asset Management, corporate and asset finance, and banking services fell four per cent to $3.29 billion.

Managing director and chief executive officer Shemara Wikramanayake said on Friday the company’s fiscal year 2020 result would likely be softer as the company awaits further regulatory change and grapples with tax uncertainties.

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