Within today’s dump of balance of payments data that feeds into tomorrow’s September quarter national accounts release was the important news that Australia’s terms-of-trade rose another 0.4% in seasonally adjusted terms and by 1.2% in trends terms:
Over the year, the terms-of-trade rose by 7.8% in seasonally adjusted terms and by 8.0% in trend terms.
Since the terms-of-trade measures the prices received for Australia’s exports relative to the prices paid for imports, this terms-of-trade result suggests it will support both national disposable income (NDI):
As well as nominal GDP:
Too bad workers aren’t getting a slice.