Q3 GDP from Australia:
+0.3% q/q
- expected +0.7% q/q
- prior was +0.5% q/q
+2.7% y/y
- expected 3.1%
- prior was 3.1%
Terrible!!! A very, very big miss on expectations.
AUD getting hit lower – lowest since 2010 now
–
I had suggested the internals would be worse than the headline …. but wow …. that headline is a shocker
The orderboard has buyers at 0.8400 …. but i don’t know how long it will hold there … looks like only a matter of time before sub-0.84
A measure of inflation, the GDP chain price index, fell 0.3% q/q and is up just 0.1% y/y. I have to wonder what its going to take for the RBA to cut rates … or at least adopt an easing bias.
Added:
- Real domestic income has now declined for 2 consecutive quarters (the “income recession” as the terms of trade collapses with declining commodity prices)
- Net exports contributed 0.8 percentage points to GDP growth
- Household final consumption expenditure contributed 0.3 percentage points to GDP growth and Government final consumption expenditure contributed 0.1 percentage points to GDP growth
- This was offset by a -0.7 percentage point contribution to GDP growth from total Gross fixed capital formation and a -0.1 percentage point contribution from Changes in inventories
- The September quarter saw the Terms of trade decrease 3.5 per cent in seasonally adjusted terms.
I really need to dig up that picture of a dog vomiting down the toilet