At the same time, the very serious drought has strengthened its grip on the rural sector, and farm production and incomes will be sharply lower this financial year as a result. The demand for labour has remained very strong, with higher than average increases in employment and some further decline in the rate of unemployment through the turn of the year.
Data on job vacancies and from business surveys suggest little moderation in this area in the near term. Looking abroad, the world economy continues to post a strong performance, led by the US and China.