China’s still looks to be a goer for us, and watch out for Australia’s LPG sales rapidly escalating, he forecasts.
But do economies really work from the top down?
Almost in passing, he said people are leaving their money in the bank.
Unfortunately, he didn’t take that thought any further.
It was left to other speakers at “State of the Market” to mention that, apart from increasing their savings, the punters are also trying to pay down the mortgage. They’re still worried, and don’t quite believe the recent increases in some residential markets are indicative of a genuine upturn.
People know there’s more correction to be wrung out of this bubble but today’s trying-to-be-upbeat speakers were unprepared to say as much.
To me, this all this decodes to ineffective demand being slowly visited upon Australia. Retail’s certainly in the doldrums: just pop into any Myer or David Jones.
And isn’t it really whether people are spending that determines the direction of the economy?
Oster said eateries and health are sustaining us – but I guess health cuts both ways, Mr Oster?
I’m suggesting the glass may have recently been half-empty, Alan, but its contents continues to diminish.