Page 12 - atoday sept 24
P. 12
A12
WORLD NEWSThursday 24 September
Eurozone: Australian consumer
confidence jumping
As economic growth plateaus, VW scandal a worry on change of leader
PAN PYLAS A worker completes engines of the German manufacturer Volkswagen Sachsen in Zwickau, ROD McGUIRK
Associated Press eastern Germany. Volkswagen’s share price swung wildly Wednesday, Sept. 23, 2015 as CEO Associated Press
LONDON (AP) — Economic Martin Winterkorn stepped down amid the company’s growing emissions scandal. Above CANBERRA, Australia (AP)
growth across the 19-coun- and beyond legal problems, the scandal is a huge problem for a brand long identified with — Australian consumer
try eurozone is showing trustworthiness and reliability. And there are concerns that could spill over into a wider image confidence has jumped
signs of slowing, according problem for goods “made in Germany.” following the ouster of the
to a survey conducted be- country’s unpopular prime
fore any assessment of the (AP Photo/Jens Meyer) minister last week by a
impact on German indus- moderate rival.
try of the emissions-rigging gion on course to expand cles contain software that cations for growth. The optimism of Australians
scandal engulfing carmak- by just 1.6 percent this year. evades emissions controls, rose 8.7 percent in the lat-
er Volkswagen. A more detailed look at the far more than the 482,000 Carsten Brzeski, chief est ANZ-Roy Morgan con-
Financial information com- survey shows that Germany cars identified last week by sumer confidence survey
pany Markit said Wednes- is enjoying its best quarterly the U.S. Environmental Pro- economist at ING Ger- published on Tuesday.
day its monthly purchas- expansion for a year even tection Agency as violating The survey was conducted
ing managers’ index — a though growth slowed clean air laws. many, said the ongoing last weekend after Tony
broad gauge of busi- slightly in September. While Volkswagen is strug- Abbot was replaced as
ness activity — fell to 53.9 Some economists are be- gling to contain the fallout, refugee crisis and now the leader of the ruling Liberal
points in September from ginning worrying about the there are concerns that Party and prime minister by
54.3 the previous month. impact on German growth the scandal will hit sales as “Volkswagen shocker” Malcolm Turnbull in a vote
Though anything above 50 from the Volkswagen crisis. brand is damaged. of government lawmakers.
indicates expansion, the The world’s top-selling car- Since VW is a major part pose new risks to the Ger- Lack of economic leader-
decline points to slower maker has admitted that of the German economy, ship from
growth. 11 million of its diesel vehi- there could be some impli- man economy, which Abbott was one reason for
Markit says its survey points his unpopularity. Austra-
to quarterly growth of 0.4 have yet to be picked up lia’s economy has suffered
percent in the third quar- from China’s slowdown,
ter, unchanged from the by surveys. the main market for main-
previous three-month pe- stay exports of iron ore and
riod. Brzeski concedes that it is coal.
“There remains a worrying Turnbull is already claim-
failure of growth to accel- “unclear” what the impact ing to have boosted busi-
erate to a pace sufficient ness confidence but has
to generate either higher of the VW crisis will be, but given no timetable for pol-
inflation or strong job cre- icy measures that would
ation,” said Chris William- that there will likely be one promote productivity, busi-
son, Markit’s chief econo- ness confidence and in-
mist. given the size of VW. q vestment in a sluggish
The projected quarterly economy.
growth rate is, according “We have already seen
to Williamson, below what a rise in business confi-
is generally regarded as dence because we have
the eurozone’s long-term a government that is talk-
potential and puts the re- ing confidently about
our future and is talking
Chinese manufacturing index falls to 6.5 year low optimistically about our
future and indicating if
KELVIN CHAN Markit index, which is based in Beijing in early Septem- to prevent growth from not the precise policies —
AP Business Writer on a survey of factory pur- ber, analysts said. China’s falling too sharply. Service because I’ve only been
HONG KONG (AP) — Chi- chasing managers, fell to factories cut output, staff industries have been grow- prime minister for a week
nese manufacturing activ- 47.0 in September from 47.3 numbers and prices at a ing rapidly but economists — but the outcomes we
ity fell to its lowest in more in August. Numbers below faster pace as both new say Beijing may still need seek to achieve,” Turnbull
than six years in the latest 50 on the 100-point index export orders and overall to speed up government told Sky News television on
sign of the slowdown in indicate contraction. new orders fell, the report spending to achieve the Wednesday.
the world’s second biggest It’s the sixth straight monthly said. Chinese manufactur- full year growth target of Chris Richardson, a part-
economy, according to a decline for the index, which ers employ many millions 7 percent. China’s eco- ner in Deloitte Access Eco-
survey released Wednes- is at its lowest since March of workers and represent nomic growth held steady nomics, said while he was
day.The latest data was 2009, when the world was a big part of the overall at 7 percent in the most not aware of which busi-
worse than economists had gripped by the fallout from economy but they are feel- recent quarter, which was nessconfidence surveys
expected and unsettled the global financial crisis. ing the effects of a weak its weakest performance Turnbull referred to, he sus-
global financial markets. The preliminary index read- recovery in major markets since 2008. Growth has pected the prime minister
Uncertainty about the ex- ing is based on 85 percent overseas.“Today’s data fallen from the double- was correct.
tent of China’s slowdown of survey respondents. The highlights the considerable digit rates of the previous The Australian Industry
has been on the radar of final figure, which is often headwinds to growth from decade as Beijing tries to Group, a business advo-
investors, particularly after revised, is due by Oct. 1. soft global demand,” said wean the economy off its cacy group, said its surveys
the Federal Reserve men- Activity may have been HSBC Greater China Econ- reliance on trade and in- of manufacturing, services
tioned China as one of its weighed down by tempo- omist Julia Wang. vestment in favor of do- and construction industries
reasons for not raising inter- rary factory closures and The data will add to the mestic spending on goods had shown expansion in
est rates last week. a two-day national holi- pressure on China’s com- and services but the transi- recent months which fed
The preliminary Caixin/ day for a military parade munist leaders as they try tion is challenging. q improved business confi-
dence generally.q
