Data over the last couple of weeks has been critical and I suspect we’ve just passed through one of those defining moments for an investor. Mostly that’s due to the level of debate on the Australian economy. Recall the consensus view: That the economy would be weak over the next few years driven down by the end of the mining boom - the investment cliff even! Heavily leveraged consumers would be unable to pick-up the slack, and no reason was given as to why there would be no pick-up in non-mining investment. It just wouldn’t. Finally, the excessively high dollar was branded a millstone. That narrative has been dealt a severe body blow.
But it’s less about the actual growth number and more about the correct narrative