We got the Australian company profits data earlier and Westpac's take on it is a positive
In brief ...
The Business Indicators survey was more positive than we anticipated, across both inventories and incomes
- Company profits boosted by surprising mining profits
- Inventories will be neutral for Q3 GDP
- Wages and salaries made a moderate gain in Q3
These point to a material upside risk to our Q3 GDP forecast of 0.7% q/q and 2.1% y/y
Tomorrow, net exports and public demand data will be released, following which we will review our GDP forecast.