Welcome to the 26th Edition of AECascent.

Over the past few months since our previous issue, the Australian economy has undergone a period of substantial change culminating in the Reserve Bank announcing a cut in the official interest rate after almost seven years of interest rates rises. This easing of interest rates is expected to relieve some of the slow down in growth that the Australian economy has been experiencing due to lower household spending and a slowing of credit expansion for businesses and households brought about by higher fuel and grocery prices, along with the uncertainty plaguing international credit markets.

Compared to our last issue the Australian economy has also witnessed:

• Declines in consumer and business confidence;
• Continuing restrictions on household spending with higher costs of fuel, energy and financing contributing to household costs;
• Continuing strength of business services and mining sectors (despite declining business confidence across the economy);
• Significant increases in uncertainty surrounding global capital markets (which has affected global trading activity and financing costs).

As such, we will look to the coming months with interest (and cautious optimism) to see whether the recent interest rate decline may be enough to restore national consumer and business confidence and start the economy off on the first step of many on the upward curve of the economic cycle.

On the homefront (and on a more positive note), AECgroup and this issue of AECascent has also undergone a period of change and restructuring. The past few months have seen a number of significant developments for the company, including restructuring of organisational divisions, refurbishment of the Brisbane office and the recruitment of a number of new and exciting staff members who bring diverse expertise to the AECgroup across a number of divisions.

Following the previous 25 editions of AECascent, which commenced in January 2001, you may notice a number of changes to current issue. Firstly, after being the founder of AECascent in 2001, Simon Smith has handed over the position of editor to myself, Sarah-Jane Conroy (Research Economist, Economics, Development & Planning (EPD)). I hope to work closely with Simon over the coming months and hopefully re-vamp the face of AECascent, bringing fresh ideas and new focus to the editorial.

Marking Issue 26 is also the new design of the AECascent website to match the recently redesigned and refreshed company website which reflects the organisational realignment and all new branding. Thanks to the design team, AECascent is also now in colour!

I hope you enjoy the current issue and stay tuned for the next edition, which promises to be just as exciting as this one.

Sarah-Jane Conroy