The Economic update – November 2012

In the US GDP growth continues at trend. The housing sector showed signs of recovering and the industrial sector where capacity utilisation rose.
There were further signs of weakening in Japan and in China, as GDP growth fell again, but there are some signs that the slowdown is levelling out.
The RBA cut rates on concerns of a global growth slowdown. With investor lending not following suit and the risks of creating a property bubble low at present, this leaves the RBA free rein to continue to cut rates further to support growth in the rest of the economy.