Australia's Q2 GDP showed the fastest annual growth in six years
The headline is pretty as the downfall following the mining boom is starting to fade even more and on top of that, global trade tensions doesn't seem to be having an overbearingly large impact on the Australian trade and that is a positive too.
But other details aren't that rosy.
Of particular concern, the household savings ratio continues to slow down even further:
In fact, it's fallen to its lowest level since Q4 2007. What that means is that households are finding it difficult to save more as wage growth continues to stay near-stagnant. That remains a real thorn in domestic consumption - which is a key area that the RBA looks at. In their words, "household consumption remains a source of uncertainty".
And this is where the proof lies.
Add to the fact that housing prices are continuing to fall (housing actually added to growth this quarter), it's not an encouraging outlook heading into 2019 with lenders set to raise their mortgage rates despite the RBA not raising the cash rate.
CoreLogic's house price index shows Sydney dwellings falling at its fastest pace in 9 years
So, while the data beat is showing that the economy is still relatively resilient in the wake of rising global trade tensions and a slightly slower China, domestic consumption remains a very major problem and that is something the RBA can't ignore despite solid growth figures on paper.
