The decline in capital goods imports over the past year suggests that business investment is set to fall further in the second half of the year. What's more, the fall in real retail sales in Q3 points to a renewed easing in consumption growth. The upshot is that the RBA is too optimistic on growth. Our more subdued growth forecasts explain why we expect inflation to fall further below the RBA's target before long.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services