The Australian economy’s 30-year expansion, one of the longest of any country in the history o

The Australian economy’s 30-year expansion, one of the longest of any country in the history of capitalism, came to a screeching halt in the last quarter. Figures for the three months to June show a contraction of 7 percent, the largest fall since records began in 1959. While economists expect a rebound in the next set of quarterly figures, the real pain for many working-class households is only just beginning.

Hospitality, recreation and transport have been the worst-affected industries. Construction and manufacturing are also struggling because investment started to dry up in the middle of the year.

An Australian Bureau of Statistics business survey, released in August, revealed that almost a quarter of companies had reduced or cancelled investment plans in the previous three months, and that a third of businesses were expecting difficulties meeting their financial commitments over the next three months. Uncertainty about the future was affecting the investment decisions of 50 percent of businesses.

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