Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Australian leading index collapses

Australian leading index collapses, pointing to recession

Nov. 19 – Australia’s leading index of economic activity tumbled in September, posting a bigger drop in the growth rate than during the 1991 recession and suggesting that nation is heading for another contraction.

The annualised growth rate in the Westpac Institutional Bank-Melbourne Institute leading index of economic activity slowed to 1.1% in September from 3.5% in August, the largest slide since the mid-1980s.

“This is a very disturbing fall in the growth rate of the leading index,” Westpac chief economist Bill Evans said in a statement. “It is consistent with Westpac's view that growth in the first half of 2009 will be barely positive, with a decent risk that the first two quarters of growth in 2009 could be negative.”

The leading index also supports Westpac's prediction that the Reserve Bank of Australia will slash its target interest rate by 75 basis points to 4.5% in December, its third consecutive monthly cut. The central bank last week lowered its forecast for 2008 economic growth to 1.5% from 2% as the global economic slump erodes demand for the nation’s raw materials.

The leading index fell 2.5 points in September to 258.4. The coincident index, which measures current growth, rose 0.1% to 236.0.

Australia’s benchmark S&P/ASX 200 Index has tumbled 43% this year amid company failures, profit downgrades and rising costs in a frozen credit market. Business confidence fell to a record low in October.

(Businesswire)

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Any Questions: Scoop Launches New Q&A Website

It’s an easy way to find out party positions and allows you to view candidates’ answers side by side. It’s also a way for you to make your voice heard this election, and get the parties talking about the things that are important to you. More>>

ALSO:

Binoy Kampmark: Trump And Afghanistan

Donald Trump did what US Presidents have done since George W. Bush: commit. Commit, that is, to the mission; commit more promises; and commit more thoughts to blotted paper about the war that never ends in the graveyard of empires. More>>

ALSO:

Rawiri Taonui: The Maori Election

The election battle for the Maori seats 2017 opened last year when Maori Party President Tuku Morgan announced a peace deal with the Mana Movement aimed at securing all the Maori seats and holding the balance of power. More>>

Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>

ALSO:

Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>

ALSO: