More bad news for Australia's economy
Australians are buying fewer cars, and this is a worrying sign for the economy, which is already sagging enough for the Reserve Bank of Australia to cut rates to a record-low 1%. Federal Chamber of Automotive Industries figures show 117,817 vehicles were sold across Australia in June, down 9.6% from a year earlier. Some 554,466 cars have been sold so far this year — the worst first-half of a year since 2012. In particular, sales of utes and cheap small passenger vehicles popular with younger people are down, which is a worrying sign for the construction sector and consumer confidence in general.
Business Development Manager
As to the concern of reduced new car sales, Kevin Rudd in 2009 initiated a 50% reduction for small business to purchase a new vehicle. This proved to be a strategy that worked well in helping stimulate the economy.