OK … What’s Going On?

Last weekend in the Financial Review, Andrew Clark began his article (on page 52) with the words:

“Australians don’t know if they’re in the middle of a pause that refreshes or the dullness before the deluge.”

That about sums up the general feedback I am receiving at the moment, from clients and colleagues alike.

Clark felt this probably stems from a combination of …

  • a lack of Federal leadership,
  • declining retail turnover,
  • poor flow-on from the mining boom and
  • the spectre of financial defaults overseas.

Presumably, this was behind the RBA’s decision to keep the cash rate on hold until next month — pending more economic data in the coming weeks.

On the plus side …

The IMF predicts solid growth going forwardAccording to the IMF … in spite of all the recent turmoil, the outlook for global economic growth appears quite rosy moving into the new financial year. [Read more…]

Making Sense of
The Mining Boom

Size-wise, as a proportion of Australia’s economy … Manufacturing and Mining contribute more or less the same output.

 Services rival Mining on Investment However, Mining’s investment spend is currently more than three times that being spent by the Manufacturing sector.

All the media attention has mainly been focused upon this disparity. But that doesn’t really tell you the complete story — as you can see from the first of these graphs. [Read more…]