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Enconomy stalled, no good for home owners

Australia's economic recovery has stagnated in the last six months, according to recent research.

The latest Westpac–Melbourne Institute Growth Index found the annualised growth rate was 4.6 per cent in September.

The speed of the turnaround is“a little disconcerting. The growth rate of the Leading Index continues to point to a solid pace of expansion heading into late 2010/early 2011, but that pace has slowed abruptly over the last six months.

Dwelling approvals (–1.3ppts), overtime worked (–1.3ppts) and productivity (–1.3ppts) have been instrumental in the growth stall.

Dwelling approvals continued to slide, registering another large 6.6 per cent fall following the 4.8 per cent drop in August.

While the banks choke on profits everyday Australians struggle to increase their net wealth. Lets hope 2011 brings some property growth for home owners and investors.