The economy is slowing, yet the RBA seems desperate to ensure this is as good as it gets for a long time | Greg Jericho

in a recession or the GFC, and no one believes it is about to improve.Most of the growth in March came from private investment in machinery and equipment. But take away public sector investment and spending, and the economy would have not grown at all:The private sector has not been producing anything like enough to keep the economy running along nicely.

That’s not wonderful news, given last year private-sector investment has basically contributed nothing to GDP growth:Corporate “gross operating surplus” rose 3.2% in the March quarter, ahead of the 2.4% rise in the compensation of employees. ‘ Over the past year, corporate profits rose 12.7% while employee compensation rose 10.8%. Because employees’ wages and salaries make up half of the economy and profits make up 32%, this means wages are now contributing as much as profits to GDP growth:

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