In the last half century the Australian economy has changed markedly in structure, these changes have changed the composition of Australia's employment base.
Manufacturing is measured by the Purchasing Manager's Index. Readings below 50 indicate contraction and above 50 expansion. Australian manufacturing continues its slide in recent data and the mainstream media has totally ignored it so where do we stand?
Canada 52.4 Expanding Slower
France 42.7 Contracting Faster
Greece 42.2 Contracting Slower (Gold Medal!)
Ireland 51.8 Expanding Faster
Spain 44.5 Contracting Slower
Switz 43.6 Contracting faster (Silver Medal)
UK 48.4 Contracting Faster
USA 51.5 Expanding (???!!!)
And, the land Downunder? The "Lucky Country"?
AUSTRALIA 44.1 Contracting Faster (BRONZE to Australia!!!)
And, the land Downunder? The "Lucky Country"?
AUSTRALIA 44.1 Contracting Faster (BRONZE to Australia!!!)
How are we going to bat our way out of this mess when the $USD remains subdued (and by default the $AUD high) through our No1 ally's US Federal Reserve continued money printing and currency debasement and policy of 'beggar thy neighbour'?
Now add in large falls in the Services Sector employment as house prices continue their slide and totally mad austerity policies by ideologically driven new governments in QLD, NSW and Victoria and what are we going to end up with?
Top it of with a mining sector cooling from THAT bubble in prices and lessening demand and what shall we get?
A depression.
Look at the bright side, the Irish manufacturing sector is now expanding. Just ignore the fact that their unemployment sits at 14.9% from its sub 5% lows in 2006 and house prices have fallen 50% in 6 years.
Hang on Paddy, we'll be there soon.
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