Construction PMI puke deepens

From the AIG:

Australia’s next economic downturn has begun. Full report.


  1. Even avo producers are being smashed, it’s a bad sign when consumers cut down on luxury foods:

    Australia’s largest fruit and vegetable grower has been smashed by an unexpected fall in tomato, berry and avocado sales last month, promoting a hefty profit downgrade and a share-price savaging.

    Investors savaged Costa Group on Thursday slicing 39 per cent of its share price and wiping almost $1 billion off its market value in the process after it said it expected flat profit growth this year and not the healthy growth it had earlier forecast.

  2. As predicted. Builders are rational, finishing what they have begun and sitting out the downturn. Some houses will still be built with more craftsmanship for those who can afford.

    We do not lack dwellings – that would show in rising rents. The enduring scarcity is of well-located high quality houses, whose prices are falling the fastest. Let the market fall.

    Don’t Buy Now!

    • Got in-laws – Cleveland with view of Bay. Big beautifully maintained 5 Br house – wanting $850K – an apparent bargain. Already dropped $100K – not a single looker in about 6 weeks!