MNI BRIEF: Aussie GDP Grows 1% Y/Y Over Q2
MNI (MELBOURNE) - The Australian economy grew 1.0% y/y over Q2, 10 basis points higher than market and Reserve Bank of Australia expectations, while household spending increased 2.9% y/y, 40bp less than anticipated, the Australian Bureau of Statistics noted within its National Accounts Wednesday.
GDP grew at 0.2% q/q, 10bp higher than the first quarter and in line with expectations.
“Spending on many discretionary categories fell in the June quarter,” said Katherine Keenan, head of national accounts at the ABS. “This followed a relatively strong result in the March quarter, which included a number of sporting, gambling and music events."
Transport services, particularly reduced air travel, weighed on growth, Keenan added. Government spending also rose 1.4%, while total investment fell 0.1%, the ABS noted.
Recent RBA policy decisions were incredibly close calls, with data often telling competing narratives, MNI reported last week. (See MNI POLICY: Competing Data Behind Recent Close RBA Calls)
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