The bank's forecast for Q4 GDP has been downgraded, to 0.2% q/q and 2.4% y/y
- Previously 0.5% and 2.7%
Follows the construction disappointment yesterday and today's beat on capex.
WPAC assessment of today's data (in summary):
- For 2018/19, the capex survey is relatively positive around investment by the service sectors. This is not a great surprise
- Mining investment in 2018/19 is likely to be below that in 2017/18, with construction of the major gas projects finalised recently.
- We interpret the Est 1 reading as describing a much less upbeat outlook than suggested by the headline figure.
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ps. Australian Q4 GDP is due for release on March 6
