Tuesday 12 March 2013

Victoria In Recession

Melbourne newspapers are claiming Victoria slipped into recession last quarter although apparently it depends on which measure you use.
Victoria, SA, ACT, and Tasmania all recorded lower State Final Demand figures for two consecutive quarters.  State Final Demand is the spending on fully finished products by households, firms and governments.
The Victorian State Government is predictably arguing that State Final Demand is only one of the ways of measuring state performance and they are confident of on-going growth once you include state exports like tourism and agriculture.

Whichever way you look at it, a downward trend in a key indicator is not good. Let's hope our richer interstate customers come and visit the QVM more regularly to help out another key indicator - the thickness of trader's wallets.