The latest jobless figures were a major talking point last week, this article from the FT puts them in context of a wider range of data points. During the peak of the GFC unemployment never ticked above 6%,despite avoiding recession Australian unemployment has been on an upward trend since 2010. One explanation for this that the overall domestic economy has been slowing down, particularly if you look at GDP growth excluding resource exports. The weak economy and deteriorating labour market have led to a slowdown in wage growth even as consumer price inflation has been accelerating. At a consumer level there is mixed data at a business level the RBA says there has been no increase in nominal business investment outside of the mining industry in more than five years. This article is a great read following on from the jobs data last week. (VIEW LINK)
great share James - and some excellent charts in there
The statistics on manufacturing levels is pretty alarming. Manufacturing output is lower now than it was in 2002 and is set to fall further once the last of the auto plants shuts down in 2017. Not sure if you read the article from BTIM on the currency? But basically very hard to see the dollar falling quickly with all the stimulus globally. Even with the fall so far we struggle to be competitive.