“In contrast to the RBA’s recent upgrade to growth forecasts and the federal budget’s seemingly optimistic growth assumptions, we sense investor concern around the economy has risen in May,” UBS equity strategist David Cassidy said.
Falling dwelling investment, some of it due to bad weather, and a drop in net exports, in turn caused by a spike in imports, are the main reasons for the slowdown in the first quarter, with both seen as temporary setbacks.
Via Domainfax:
