AIG’s black hat-trick


So, here we have the three indexes produced b the Australian Industry Group for April. First the manufacturing PMI tanked:

Services crashed:

And construction rolled over:


All three of these indexes, such as they are, are below 45 and falling. That’s indicative of strong recession. I’ve documented that I think there are problems with the construction index and less so with services. My guess is that these indexes are overly oriented towards east coast company surveys. Even so, the dark hat-trick offers an insight into how poor conditions are in most of the economy.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.