Latest ABS figures show that GDP, in seasonally adjusted volume terms, declined 1.2% in the March quarter 2011.

This is the largest quarterly fall in GDP since the March quarter 1991.

Sovereign European debt concerns re-emerged as an issue in May, pushing global markets into negative territory for the month.

The All Ordinaries Index fell 2.2% in May to close at 4,788.9 points.  Global markets were all lower with the Dow Jones Index falling 1.9%, the FTSE falling 4.6%, the Hang Seng falling 0.2% and the Nikkei 225 falling 1.6%.

My analysis continues to point to a positive medium-term outlook for Australia.  As a major exporter of commodities the global backdrop is supportive.

The economy shed jobs in April, surprising the market.

The number of employed fell 22,100 when the market was expecting a rise of 17,000 over the month, with a massive loss of 49,100 full-time jobs underscoring the surprising report.