More Signs Of The Widespread Economic Slowdown In Australia

Australia’s  economic outlook soured once concerns began to grow about a hard landing in China.

SocGen’s Dylan Grice has previously written that Australia has benefited from a commodity bull market that is inflating a credit bubble, which itself is being inflated by a Chinese credit bubble.

And signs of Australia’s economic slowdown are mounting.

First building approvals look weak. While August approvals were up 6.4 per cent on the month, July’s figure was revised down to -21.2 per cent decline month-over-month.

australia building permits

Photo: Societe Generale

And retail sales also came in weaker than expected rising 0.2 per cent on the month in August. “The data suggest that after a bit of a spending spree in recent quarters, Australian consumers are reducing their spending to bring it back into line with earnings growth,” according to SocGen’s Klaus Baader.

australian retail sales

Photo: Societe Generale

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