Final Q1 GDP Partials Mixed, Current Account Prints Surprise Deficit

The final run of Q1 GDP partials have been released, which were mixed relative to expectations. Net exports were a 0.9% drag on growth (versus -0.7% forecast and +0.6% prior). Company profits fell -2.5% against a projected -0.9% drop (prior rise was 7.1%). Inventories rose 1.3%, against a 0.7% forecast and -1.6% outcome in Q4.

• Other data showed public consumption demand would add 0.2ppts to growth, but public investment would take 0.1ppts off growth.
• At this stage the market expects a 0.2% q/q rise in Q1 growth (unchanged from Q4), with this data out tomorrow. In y/y terms growth is projected at 1.2%, versus 1.5% in Q4 last year.
• Other data showed a -A$4.9bn current account deficit in Q1, well below the forecast A$5.2bn expected. Q4's surplus was also revised down sharply to A$2.7bn from A$11.8bn initially reported. The current account was weighed by a narrower goods and service balance and a widening in the income deficit.
• The A$ is weaker post the prints, but broader USD sentiment has recovered, which is a likely factor. AUD/USD was last 0.6675/80, off close to 0.20%.