Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
Q1 GDP rose 0.1% q/q, the slowest quarterly rate since Q3 2022. Economic growth slowed to 1.1% y/y from 1.6%, the lowest since Q4 2020 and excluding Covid Q1 1992. Imports and investment were a drag on the economy while government and private consumption plus inventories made solid contributions. The RBA was expecting a weak outturn and so this data is unlikely to change its current on hold stance.
Australia GDP %
Source: MNI - Market News/ABS
- In May, the RBA projected 1.2% y/y growth for Q2 and while Q1 is close to this, Q2 GDP will need to rise 0.5% q/q to achieve this.
- Domestic demand was soft rising only 0.2% q/q and making its lowest contribution since Q1 2019 outside Covid. Private consumption rose 0.4% q/q after 0.3% with annual growth recovering to 1.3% from 1.0% in Q4. Essential spending was robust but discretionary outlays on overseas travel and local events rose too. The savings ratio eased to 0.9% due to lower compensation growth. Both public and private expenditure added 0.2pp to growth.
- Investment was a weak spot with private dwelling construction down 0.5% q/q and non-dwelling construction -4.3% but machinery & equipment rising 2.2% after two negative quarters. Private GFCF detracted 0.2pp from growth and public was neutral. The ABS notes that the level of investment is still high and above mining boom levels of the early 2010s.
- Net exports detracted 0.9pp from growth while inventories added 0.7pp. Imports rose strongly +5.1% q/q, highest since Q1 2022, with much of imported goods going into stocks. Exports rose only 0.7% q/q driven by LNG, gold and meat shipments.
Australia domestic demand y/y%
Source: MNI - Market News/ABS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok