It is happening
It is happening. Investment outside the mining sector is picking up, balancing the fall in spending by the mining sector. In other words the baton pass is happening. In fact investment outside mining and manufacturing rose by 10.4 per cent over calendar 2014, the fastest calendar year growth in seven years. And investment outside mining and manufacturing stands at record highs. Unfortunately the lift in non-mining investment is not sufficient as yet to cover lost spending by the mining sector. So business spending looks like continuing to be a weight on Australia's economic growth performance. And while the Reserve Bank could cut rates again, it is far from certain that this would have a measurable impact in further lifting business spending.
I am married with three children (all in their 20s) and currently live in Huntleys Cove in the inner west of Sydney. Chief interest is athletics and trying to keeping up with the children.My current role is Chief Economist, Commonwealth...
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