Mar 31, 2010

New economic data: no damn good for a government trying to frame a Budget

New economic data suggests an economy marking time -- not what the government needed to hear as it works out how heavily to slash expenditure in the Budget.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

Today’s retail sales and housing approval data from the ABS are of precisely no help to the government as it enters the final stages of its Budget preparations.

Recent economic data has shown the transition from stimulus-supported demand to private-led demand under way as the stimulus impact starts to withdraw.  Voters concurred, with strong consumer confidence figures and much greater confidence about job security suggesting a sense that we were indeed, finally, “out of the woods”.  Business, in turn, appeared to be investing based on this confidence, rather than on actual conditions.

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One thought on “New economic data: no damn good for a government trying to frame a Budget

  1. Meski

    The market’s ability to predict the RBAs'[1] actions hasn’t been good of late.

    [1] combination of a possessive applied to an acronym – I think the apostrophe goes after.

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