Such levels have typically coincided with a short-term contraction. After five years of stellar growth, the economy is now entering a more sedate growth phase, as is required to alleviate pressure on resources.
While the economy is down, it is not out for the count. Employment and profit expectations have risen and export intentions are at a four-year high.
Is the economy in the midst of a recession? We find this difficult to believe.
Confidence is a critical element if the economy is to maintain forward momentum. Expect growth to remain tepid but a recession to be averted.
The economy is far from being on the ropes.