Swan cautious as economy faces new tests

Australians will know much more about the state of the nation’s economy by the end of this week.

The Statistician is planning a string of important releases this week, starting with July’s economic indicators and new figures on the nation’s social trends tomorrrow.

The really big numbers, though, will be released on Wednesday and Thursday.

The nation’s retail trade figures for May, which are to be released on Wednesday, will show whether Australians kept spending as the first round of the Federal government’s stimulatory measures passed.

The bureau is also planning to release new building approval figures for May and engineering construction figures for March on Wednesday.

Fresh international trade figures, also for May, are also to be released on Thursday.

On Friday, Australians will  also get a much clearer picture of the nation’s job market, with the release of current labour market figures, which will draw together a range of  labour market statistics.

So far, at least, Australia has held up remarkably well  against the ravages of the global economic crisis.

However the Federal Treasurer, Wayne Swan, is warning Australians against excessive optimism, saying the nation still has “a rocky road ahead.”

He said the commodities boom is now unwinding and he warned that would have a “devastating” impact on Australia’s trade.

Mr Swan said the value of Australia’s commodity exports is expected to fall by 18.1 per cent in the new financial year.

He said that would strip $35 billion from the nation’s export earnings over the coming 12 months.

“This will be drive by a sharp decline in  minerals and energy export earnings, which are expected to fall by 22.4 per cent,” Mr Swan said.