Richard Gibbs, Head of Economics at Macquarie Research has released his monthly economic commentary, with news dominated by the issue of tapering in the US...

Richard Gibbs, Head of Economics at Macquarie Research has released his monthly economic commentary, with news dominated by the issue of tapering in the US whilst Australian data continues to point weaker. In the US and Eurozone, the run of data continues to be positive with lifts in housing and corporate earnings in the US. European GDP growth turned positive and PMI data has strengthened, whilst Japan is also sustaining reasonable growth. Chinese data was mostly stronger than expected, with low inflation and growth in exports, imports and industrial production. In Australia, business confidence and employment fell whilst the RBA lowered its growth forecast for 2013. Despite this, the bank is more upbeat about 2015 and forecasts low inflation, suggesting the maintenance of an easing bias on its monetary policy. (VIEW LINK)