Reserve Bank Governor Philip Lowe.
Reserve Bank Governor Philip Lowe.

Australia and the world are facing growing prospects of a nasty global slowdown with multiple signs of faltering growth and further stagnation over the last 24 hours -- and yet more rotten wage growth data here.

Preliminary estimates revealed a shock 0.1% fall in German economic growth in the three months to June, and annual growth of 0.4%, down from 0.7% in the March quarter, as tensions triggered by Donald Trump’s trade war with China hit its export-heavy manufacturing sector (the mechanism by which concerns about the trade war end up harming growth and investment are well explained by Reserve Bank Deputy Governor Guy Debelle in a speech today). And key Chinese data slowed more sharply than expected: its industrial sector lifted output by 4.8% in July, down sharply from the 6.3% jump in June and the lowest monthly reading since 2002.