Q2 GDP takes big hit with weak business indicators

Monday, 2 September 2019

The ABS just released its business indicators for the June quarter, which posted modest rises across most categories:

In particular, inventories slumped -0.9% (from +0.7% last quarter), which will shave circa 0.5% from GDP. But company profits (+4.5%) and wages (+1.4%) were a bit stronger.

Tomorrow, we’ll receive balance of payments and government spending data from the ABS, which will provide more colour on Q2 GDP before its release on Wednesday.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.