Markets live updates: ASX set to slip as Wall Street slides on inflation worries
Australian market economists are analyzing recent business indicators to forecast Q2 GDP growth, with a consensus expectation of 0.4% growth. While some analysts express concern over inventory levels, others point to robust company profits and wage growth as positive signs for the economy.
Why it matters
GDP data is a critical indicator of national economic health, influencing central bank policy and investor sentiment in Australia.
What do today's business indicators tell us about Q2 GDP? S By Stephen Letts
Today's release by the ABS of Q2 business indicators have market economists narrowing their focus on the likely outcome of Wednesday's GDP number. But have they changed anything?
While all are waiting for the final pieces of the National Accounts puzzle tomorrow (net exports, terms of trade and public sector spending are still to come), today's numbers don't appear to have shifted the consensus much.
That consensus sits at 0.4% GDP growth over the quarter and 1.9% over the year.
That's a marked slowdown from the 2.5% annual pace in Q1, but a tick up from the 0.3% QoQ growth reported at the end of March.
A big driver in that result is that the solid 1% Q2 growth in 2025 will drop out of the annual calculations.
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