AU GDP q/q

Australian Treasurer Jim Chalmers says his country is on track for a soft landing as a result of "moderating inflation and a resilient labor market." He also says that the relationship with China can be "complex to manage" but there are "good economic dividends" from engaging with Beijing. Chalmers speaks to Haidi Stroud-Watts on the sidelines of the Morgan Stanley Australia Summit in Sydney.

video A rebound in inflation or stickier than anticipated price pressures would force the RBA to hike interest rates again, Reserve Bank governor Michele Bullock has told a senate estimates hearing. “If we think we’re on the narrow path, we can stay basically, pretty much where we are: not ruling anything in, ruling anything out,” she said. “But if it turns out, for example, that inflation starts to go up again or it’s much stickier than we think we’re not getting it down, then we won’t hesitate to move and raise interest rates ...

GDP rose by a weaker-than-expected 0.2% q/q (2.1% y/y). On the activity side, revisions, volatility and one-offs muddy the read at the component level, though a clear further slowing in both domestic final demand and GDP growth is evident. Household consumption was flat in the quarter with subsidies on electricity and childcare subtracting from measured growth, though easing supply issues saw a boost to spending on vehicles. On net, these “one-off” factors are broadly offsetting and their impact on growth will wane next quarter. That ...

One clue that today's 3Q23 GDP growth figure was not going to match the optimistic 0.5% consensus expectation was from the contributions to GDP from net exports data released yesterday. That showed a 0.6pp drag on growth, more than the 0.2pp drag expected, and removing most of the 0.8pp boost from the previous quarter. Inventories also dragged down the GDP growth rate. Household consumption has slowed again and made no change over the previous quarter. Household consumption has been slowing continuously since 2Q22, and shows the ...