Australia: Real GDP of +1.1%/qtr beat market forecasts - TDS

Research Team at TDS, notes that the Australia’s real GDP of +1.1%/qtr beat market forecasts for a +0.8% gain, to take growth on the year to +3.1%.

Key Quotes

“The strong contribution from net exports and household consumption offset the declines in mining investment. Overall the data supports the notion that the non-mining recovery is gaining traction, with industries positively exposed to a softer AUD - finance, accommodation food services, and Arts/recreation adding to growth. However the soft price measures in today’s report confirm the July 27th Q2 CPI release is really the key data point that will matter for the markets and RBA.

May House prices (CoreLogic RP data) rose 1.6%/m nationally, a very strong result considering that May is seasonally a weak month, to see prices up 10%/yr. Sydney led the charge, prices up 3.1%/m, Melbourne +1.6%/m, but Perth fell 2.6%/m.”