The National Accounts were released today and they were a shocker.
I both agree and disagree with the Kouk.
GDP growth would be weaker if the government 'savings' measures were passed by the senate.
Just think at a time of record low yields on bond yields both for Commonwealth and State in this quarter public investment detracted 0.5 percentage points from GDP!
This at a time when we need investment in infrastructure.Just ask either the IMF or the OECD.
I am not as worried about future quarters as commodity prices rising will boost national income.
I doubt whether a cut in interest rates will do anything but boost housing prices thus I do not expect the RBA to cut more. More so given the depreciation of the $A.
Greg Jericho has a good summary about the figures.
Mark the Graph is sensational