But the collective sum of those decisions created, over the ensuing six months, an international slump in demand for consumer durables and investment goods that was sharper, and more synchronised, than any seen for decades. The result is that the world’s gross product is now thought likely to decline in 2009, the first time that has happened for many decades.
Australians shared in this more cautious behaviour, particularly in the business world. A range of business surveys indicates that a trend moderation in business confidence that had been occurring for some months turned abruptly much weaker in October, and remained weak thereafter (Graph 1). There was some recovery in March.