Just three of the 19 industry sectors contracted in the March quarter. Modest contributions to growth came from mining, financial &insurance services and professional & scientific services, while the manufacturing sector detracted 0.1 percentage points from economic growth.

The economic growth data is backward-looking. But more recent figures have generally remained soft. We believe the Reserve Bank should cut rates again, especially given the downside risks to global growth and are pencilling in a move in August.

To read CommSec’s report, click here.

7 June 2012