Analysts at Nomura and Westpac offered a sneak preview of what to expect from Wednesday’s Australian GDP release for the first quarter due at 0130 GMT.
Westpac
“Markets are more focused on Australia’s Q1 GDP data on Wed, which could please the RBA. Last week’s business investment survey showed a stronger than expected 2.5%qtr rise in Q1 plant and equipment spending, causing our economics team to raise its GDP forecast to 0.9%qtr, 2.8%yr. The median forecast on Bloomberg is 2.7%yr.”
Nomura
“With final data clues released today, in the form of government spending and net exports data, we now look for a 0.9% q-o-q rise in Q1 GDP tomorrow, which would see year ended growth rise to 2.8%. We expect to see moderate rises in consumer spending and dwelling construction, stronger spending on plant and equipment, a rise in government spending and positive contributions from inventories and net exports, with the latter rebounding from a weather-affected Q4. The national accounts should also show only modest growth in compensation per employee and a rise in productivity, with GDP growth outpacing growth in hours worked.”
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