The September DEEWR index is out and is flat on the month in seasonally adjusted terms. The trend remains firmly down:
Interestingly, weakness is spreading in the mining states and new growth is apparent in services states:
The same is obvious in blue-collar losses versus white-collar gains.
This is really quite interesting for next week’s RBA meet. There is basically no new evidence that the economy has weakened since last month’s meeting. If anything, the data is going the opposite way, with the house prices stabilised, bulk price falls halted, an reasonable NAB Survey, no great move in consumer confidence and now this report. Not much to go for sure but the RBA said it would cut on “substantial” weakness in the economy and that is just not yet evident.
The market may be head itself on an October rate cut.
