Figures released yesterday show that car sales fell by more than 12% last month in the first significant sign of a slowdown from the toxic cocktail of high oil and petrol prices, interest rates, taxes changes and low consumer confidence..
While our car sales fell sharply last month in the US car sales were again very weak last month, despite the drop in oil and petrol prices.
The Reserve Bank has had a major victory over the Australian banks with its rate cut announcement yesterday.
The Reserve Bank cut the cash rate yesterday because it can see the economy is slowing, led by domestic demand.
Last week it was Japan trying a modest reflationary package, then on Monday, when South Korea produced a package of its own as the won tumbled and confidence fell.
The New Zealand economy has been forecast to suffer a short, relatively sharp nine month recession before emerging from the slump late this year.
As usual it pays to compare and contrast the statements issued after each RBA board meeting.
