Australian data: Q1 GDP 0.2% q/q (expected 0.3%) | Forexlive

Australian economic growth data for the January – March period 2023.

0.2% q/q for a miss on already low estimates

• expected 0.3%, prior 0.5%

2.3% y/y

• expected 2.4%, prior 2.7%

Inflation indicator in the data … little sign of diminishing price pressures here:

• The GDP implicit price deflator rose 1.9 per cent in the March quarter and 6.8 per cent compared to March 2022.

Growth components:

• Domestic final demand contributed 0.5 percentage points to GDP growth

• Capital investment drove demand and contributed 0.4 percentage points to GDP

• Consumption expenditure by households and government were subdued, with a combined contribution of 0.1 percentage points to GDP. Household consumption (+0.2%) slowed as discretionary spending fell below essential spending for the first time since the Delta-variant lockdowns. Government expenditure grew 0.1%.
• Net trade detracted 0.2 percentage points from GDP
• Changes in inventories recorded a build-up of $2.4 billion in March quarter, matching the build-up in the December quarter, and did not contribute to growth.

More:

• Household saving ratio decreased to 3.7% from 4.4%, the lowest level since June 2008. Sheesh, slower savings contributed to crappy economic growth. Not good.
• Productivity down 0.3% to be down 4.6% over the year