Yesterday one of the Big 4 banks, I’ll let you guess which one, released a report into the economic performance of each State in Australia.
Predictably the report highlighted the fact that the mining boom has finished. They also argued that the States that were not part of the mining boom have taken the lead and are “powering ahead”.
By powering ahead, there has been a slight increase in housing activity in NSW and Victoria. The report also argues that personal spending is rising, however they probably didn’t look at the spending increase being based on people maxing out their credit cards even further.
Investment in Australia is falling, demand is low, including demand for credit which leads to lower interest rates. The report also talks about the inflation data being released on Friday. According to this report there is no reason for confidence to be falling.
Yet confidence in Australia has been falling consistently for many years. Perhaps the authors of this report should try and work out why their views don’t match reality.