The ABS just released its business indicators for the March quarter, which posted modest rises across most categories:
In particular, inventories rose 0.7% versus -0.2% in Q4. Company profits (+1.7%) also beat last quarter (+0.8%), as did wages & salaries (+1.1% versus +0.8% in Q4).
Therefore, the outlook for Q1 GDP has improved from dire to poor, given:
Advertisement
- Retail sales (-0.1% in Q1 2019) were below Q4 2018 (flat);
- The value of construction work done (-1.9% in Q1 2019) was well below Q4 2018 (+2.1%); and
- Private new business investment (-1.7% in Q1 2019) was well below Q4 2018 (+1.3%).
Tomorrow, we’ll receive balance of payments and government spending data from the ABS, which will provide more colour on Q1 GDP before its release on Wednesday.
