London-based Capital economics says the outlook for the Australian economy has worsened
This is via the folks over at LiveSquawk, who often post up reports from Capital Economics, usually within moments of them being released. This particular report is on the LiveSquawk website .... it may require a subscription, but they do have a free trial period if you want to see the report and give them a go.
In brief (bolding is mine, as is the shock and denial):
- Some of the latest data have suggested that economic activity in Australia has accelerated since the turn of the year
- The bigger picture is that the economy is still struggling to cope with the end of the mining boom
Weaker than expected capital expenditure plans for 2015/16 suggest that non-mining investment will not fill the hole left behind by further falls in mining investment. We believe this deteriorating outlook for investment will play a part in prompting the RBA to cut interest rates to 1.5% by December
