"That pull-back in `other vehicles' sales that we did see would be the winding back of mining investment and now we're starting to see the baton changing across to the housing sector"
- Savanth Sebastian , CommSec economist
The number of new motor vehicle sales in Australia rose a seasonally adjusted 1.7% in December to 97,014, according to the official data of the Australian Bureau of Statistics. The rise was driven by a 4% increase in sales in the "other vehicles" category that includes utilities, buses, vans, trucks and other work related vehicles, which had turned around in the last three months after falling for ten straight months. Five of the eight states and territories enjoyed a surge in new motor vehicle sales in December. On a yearly basis, new motor vehicle sales rose 0.1% after falling 3.1% a month earlier. The positive figures, combined with recent strong retail sales and housing data, add to speculation another cash rate cut is unlikely.
Meanwhile, another report showed that Australia has been named as the world's third most free economy, outperforming the U.S. after the introduction of Obamacare. The Heritage Foundation's 2014 Index of Economic Freedom praised the country's low debt and flexible labour force. It also found Australia's independence from corruption slipped marginally, but the rule of law remained strong. The report placed Australia after Singapore and Hong Kong. The country received a score of 82, just slightly ahead of New Zealand with a score of 81.2.
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