After today's GDP partials Westpac's......>

AUSTRALIA: After today's GDP partials Westpac's forecast for Q1 GDP growth has

been upgraded to "1.1% Q/Q from 0.9%. Such an outcome would bring output more in

to line with employment strength over the past year - with jobs growth a

blistering 3.5% over the past year. Recall that the Q4 output outcome was held

back temporarily by the short-term dip in exports."

- In terms of risks Westpac note that "the consumer remains a key uncertainty.

We expect consumer spending to increase by around 0.6%, representing a

moderation from the 1.0% burst in Q4. More generally, we note that the national

accounts data is somewhat dated and that some recent developments have been less

favourable - eg jobs growth has slowed, the housing market has slowed further

with house prices pulling back from their highs, and commodity prices have eased

a little. Key headwinds remain, notably, weak wages growth is constraining the

consumer and the housing sector is cooling as lending conditions tighten."