HomeBusiness/EconomyFresh Data Point To A Decrease In Previously Strong Economic Growth

Fresh Data Point To A Decrease In Previously Strong Economic Growth

Despite the challenges the economy is facing, Australia’s most recent growth report is predicted to produce another strong result.
As the Australian Bureau of Statistics releases several inputs into the gross domestic product (GDP) data earlier in the week, the December quarter national accounts will be issued on Wednesday.

NAB economists predict that, in part because of strong household expenditure, the economy will rise by 0.8% quarterly and 2.8% annually.

Due to the continued high demand for people, chief economist Alan Oster and his colleagues anticipate a significant increase in net exports and a good labor cost outcome.

Going ahead, they predicted that growth would abruptly decrease as the full effects of increased rates and inflation would become apparent in the second half of 2023, driven by flat to negative results for consumption.

The national accounts are expected to reaffirm the widespread inflationary pressures in the economy, and economists do not think the GDP figure will have much of an impact on the Reserve Bank’s interest rate decisions.

On Tuesday, the ABS will publish data on business indicator variables and trade accounts.

On Tuesday, when the weekly poll from ANZ and Roy Morgan is anticipated to provide more insight into consumer spending, the bureau will also reveal January retail trade data.

Following an 8.4% increase in the monthly indicator in December, the January consumer price index result will vie for attention on Wednesday.

Midway through the week, Corelogic will release its housing price data, and RBA assistant governor Brad Jones will speak at the Institute of International Finance Australia Forum in advance of the announcement on the cash rate on March 7.

Building approvals data will continue the barrage of ABS data on Thursday, and loan data will follow on Friday.

Inflation data suggested that there could be more aggressive interest rate hikes in the future, which led to heavy losses on Wall Street at the conclusion of last week.

On Friday, the S&P 500 dropped 42.28 points, or 1.05 percent, to 3970.04, while the Dow Jones Industrial Average down 336.99 points, or 1.02 percent, to 32,816.92.

To 11,394.94, the Nasdaq Composite fell 195.46 points, or 1.69 percent.

Australian equities saw a small gain, but it wasn’t enough to reverse a third straight week of losses.
The benchmark S&P/ASX200 index increased by 21.6 points, or 0.3%, on Friday to reach 7307, but it lost 0.54 percent for the week.
The larger All Ordinaries closed at 7,512.7, up 20.2 points, or 0.27 percent.

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