The acceleration in business capital spending revealed by the Ministry of Finance’s (MoF) investment survey was not enough to impress markets. Indeed, the headline annual figure is flattered by favourable base effects, while a q/q contraction is likely to mean a small downward revision to the already anaemic GDP growth rate in Q2. GDP figures look like they will get worse before they get better as plunging auto sales in August suggest the economy is on course for a sharp contraction in Q3.
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