Economy

Australia GDP Gains 0.8% On Quarter In Q2

Australia GDP Gains 0.8% On Quarter In Q2”

The primary income deficit widened $499 million.

Economists had expected a current account deficit of A$7.5 billion in the quarter.

Net exports of GDP came in at 0.3, topping expectations for a flat reading following the 0.7 decline in the three months prior.

A separate batch of data from the ABS also had positive news for GDP, with public investment from governments jumping nearly 12 per cent over the quarter.

A big part of the rise was in the volatile defence sector, although state governments maintained the recent stronger trend in spending as well.

Iron ore prices fell 16 per cent over the quarter, while volumes edged up just 2 per cent.

The value of coal exports fell 15 per cent thanks to both weaker prices and the aftermath of Cyclone Debbie dragging down volumes.

In real terms, export volumes rose 2.7 per cent, boosted by higher volumes for iron ore and LNG and other non-rural goods, while import volumes were up by 1.4 per cent.

On wages, yesterday's Business Indicators release showed that the wages bill rose a solid 1.2 percent in Q2, but this largely reflects the strength in employment in the quarter.

The Reserve Bank of Australia (RBA) has been predicting an acceleration in growth towards 3 per cent over the next couple of years, as a long slump in mining investment eases and high prices for key commodity exports percolate through the economy.

That deterioration reflected a number of known culprits, said RBC Capital Markets chief economist Su-Lin Ong.

Domestic spending increased 1.0 percent for the quarter, driven by a 0.7 percent growth in household consumption, with expenditure on food, clothing and household furnishings increasing.

"Secondly, while the quarterly data are choppy, the firmer growth momentum in the quarter is consistent with stronger labour market data and business conditions". Of more interest will be the wage rate in tomorrow's report, which is expected to show only modest growth.

Australia's net foreign debt liability decreased $21.2 billion (2 per cent) to a net liability position of $990.6 billion.



Like this

Latest


06 September 2017
Apple Introduces Wireless, Noise-Cancelling Beats Studio3 Headphones
Beats has announced the Studio3 Wireless, the company's latest iteration of its high-end Bluetooth wireless headphones. Whether this fancy new Pure ANC tech is worth the higher price tag is something we'll have to hear to find out.

06 September 2017
Can co-founder Holger Czukay passes away at 79
Czukay was found dead in his in Weilerswist home, a former cinema that is also the site of Can's Inner Space Studio. With his solo career, Czukay was a pioneer of sampling, using tape loops ahead of the digital revolution.

06 September 2017
Analyst Stock Ratings: Continental Resources, Inc. (CLR), Cheetah Mobile Inc. (CMCM)
The firm earned "Buy" rating on Thursday, July 13 by Stifel Nicolaus. (NASDAQ:EGHT) on Monday, December 12 to "Outperform" rating. Also, there are 0 buy, 0 sell and 1 strong sell ratings, collectively assigning a 1.95 average brokerage recommendation.

06 September 2017
Red Cross Senior Meets Hamas Boss on Israeli Captives
It appears that Israel is planning to decline Hamas' prerequisite demands. Ma'an did not say how Sinwar responded to Maurer's request.

06 September 2017
Rally drums up support ahead of abortion clinic hearing
Kentucky's lone abortion clinic is bracing for a legal fight against health regulators and the state's anti-abortion governor. The clinic is arguing that there is no medical justification for the law, and that it infringes on constitutional protections.

06 September 2017
Starbucks' Pumpkin Spice Latte Returns on Tuesday
If you flip the numbers upside down, the numbers represent PSL - the abbreviation for pumpkin spice latte. This isn't the first time that customers and employees have been confused over the drink's availability.

06 September 2017
Josh Bell, Max Moroff power Pittsburgh Pirates to rout of Chicago Cubs
After attempting warmup pitches, Arrieta reportedly met with a trainer before walking off in apparent pain and leaving the game. Max Moroff added three hits and four RBIs for Pittsburgh, including a solo home run off Arrieta (14-9) in the third.

06 September 2017
Texas judge strikes down Labor Department's overtime rule
It was to have taken effect December 1, 2016, but a delay in implementation was granted until the case was heard. It is not 100 percent clear which of these two options the Trump administration would choose to pursue.

06 September 2017
Wildfires In Yosemite, Glacier Park Threaten Iconic Spots, Disrupt Holiday Travel
An evacuation order is now in place for all residents and visitors from the south end of Lake McDonald to Logan Pass. Paxton said crews were improving containment lines, and they appeared to be holding the blaze.

06 September 2017
Son of Alabama's Assistant Coach, Mike Locksley, Shot and Killed
According to police, multiple people called 911 reporting they heard a single gunshot outside of Locksley's home. That's frightful , ' offensive tackle Jonah Williams said. "He did everything we asked him, it's just a shame".