There has been a lot of reporting about China ‘contracting’ of late, but what does that actually mean?

In terms of the so-called flash PMI reports, a figure of below 50 denotes contraction and a figure of above 50 is expansion.

And last week, the flash PMI figure reported a reading of 49.6 – the first time the gauge has fallen below 50 in 6 months – indicating contraction or ‘shrinking’ factory activity.

But such terms are relative.

The blue bars in the chart below shows the growth rates in China’s industrial production growth figures back to 2008. [Read more...]

The Sydney Morning Herald reports that Victoria’s economic strengths will sweep it ahead in the next 20 years according to a report by consultancy firm Deloitte forecasts.

Of course Victoria’s strong economy and population growth have been good for our property markets and now the report predicts that six ”super-sectors” will grow faster than the rest of the global economy positioning Victoria to capture the demand from Asia’s middle class for everything from better food to better education and better returns on its savings. [Read more...]