Australia, Negative Outlook

Australia, Negative Outlook

Mining (down 15 to -28 points), retail (down 17 to -28 points) and manufacturing (down 13 to -27 points), one by one the most important sectors of activity in Australia are ceasing to work at previous standards. Thus, the business conditions went back to low levels from May 2009. The overall outlook is disappointing: weak employment conditions, decreasing demand, falling prices, low interest rates and a falling Australian dollar. These weaknesses may be explained by the global weaker conditions and low demand for raw materials.

The wholesaling numbers are considered to give a reliable idea about the evolution of the economy, as the history has been proved this relationship. In these circumstances, by the end of 2013 the economy of Australia is expected to run below the trend. Recent press conferences revealed the fact that a better controlled and supervised financial system is the main concern and the key to solve important issues with long term implications.

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