Australian GDP data for the first quarter (January to March) 2018 is due Wednesday 6 June
The Q1 data we received today was better than expected:
- AUD - Australia data: Q1 Inventories 0.7% q/q (vs. expected 0.0%)
- AUD - Australia data: Q1 company profits 5.9% q/q (vs. expected +3.0%)
Westpac with a quick response, this in very brief summary form:
- tone of the Business indicators survey was positive
- risks to our Q1 GDP growth forecast … are tilted to the upside
- Additional partial indicators will be released tomorrow (net exports and public demand)
Company profits
- Mining profits led the way … on the back of higher commodity prices and increased sales
- lift in profits ex-mining … strength across construction, manufacturing, retail, as well as a partial rebound in professional business services
Nominal wage incomes (that is, wages and employment)
- relatively robust result given the mixed nature of the labour market indicators - with hours worked contracting in the quarter, down 0.3%, despite employment increasing by 0.8% (on a mid-month of quarter basis)
Inventories
- Mining inventories did fall in the quarter, a draw-down to meet increased exports
- main surprise was a strong lift in wholesale inventories
