A leading economic analyst says Australia’s strong resources sector could suffer if the United States economy slides into recession.
Craig James from Commonwealth Securities says the slowdown in the United States will have a follow-on effect for Australian shares, particularly the resources sector.
“If the US economy slows and there’s less spending by consumers and businesses, that means there’s less demand for say Chinese manufactured goods,” he said.
“If the Chinese economy sees less demand that means less resource demand from China for Australia.”
» US recession ‘could hurt Aust resources sector’ – The ABC, 14th January 2008.