While the official cash rate has been left on hold for the 13^th consecutive month, the overall outcome of the September Reserve Bank of Australia meeting came with a somewhat more positive outlook for the domestic economy, reports St George Bank.

The labour market continued to improve, with full-time employment strongly risen since the previous year, even after a decline in the month of July. Full time employment has outperformed the growth in part-time employment. The unemployment rate remains steady at 5.6%. There was a positive outlook for the labour market, with suggestions conditions are going to continue to improve. Board members noted a particular rise was in the category of older females in the work force due to delaying of retirement.

While unemployment in Western Australia and Queensland had remained high, employment growth had also risen which would suggest the market is adjusting to the earlier fall in mining investment and weakening in terms of trade.

A special mention was given in regards to the Queensland economy which had strengthened over recent quarters; reflective of growth in business investment and strength in tourism.

With regards to industry trends, developments in construction in Queensland had sustained strength over the past decade. The decline in manufacturing was noted in across eastern seaboard states.

Cautions still remain around the high Australia dollar, household debt, and wage growth.

St George maintains their view the official cash rate will be stable until next year.