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.

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