Aussie Q3 GDP preview – Westpac

By FXStreet FXStreet (Guatemala) – Analysts at Westpac noted the forthcoming Q3 data for Australia tonight.

Key Quotes:

“Last: 0.2%qtr, 2.0%yr, WBC f/c: 0.7%qtr, 2.1%yr Mkt f/c: 0.7%, Range: 0.1% to 0.9%

Overall conditions in the Australian economy are lacklustre, with growth uneven. Notably, the mining investment downturn is a major headwind.

For Q3, we expect GDP growth to print at 0.7%qtr and 2.1%yr (allowing for –0.2% for likely downward revisions to history from the annual national accounts). This follows a solid start to 2015, +0.9%qtr in Q1, followed by a meek 0.2%qtr gain in Q2.

Stronger output growth in Q3 is centred on a turnaround in net exports, from -0.6ppts in Q2 to +1.3ppts in Q3.

Domestic demand is forecast to contract by 0.5% in Q3, which would see annual growth hold steady at 1.2%. For Q3, business investment is a major negative, -5.0%, housing is a modest positive, +1.0%, and consumer spending is expected to be stuck at a lukewarm, 0.5%qtr, with soft incomes a constraint.”
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Source:: FX Street