Westpac Economic's weekly wrap

Elliot Clarke


This week the focus was squarely on the RBA and Australian Q1 GDP. While the 'no change' result met expectations, the open ended nature of the guidance was arguably a little more bullish than the market had anticipated, particularly given it came just a week after the poor Q1 Capex investment release. For Q1 GDP, the headline result was above expectations, but only because of net exports and inventories. Domestic demand was flat in Q1 and up just 0.8%yr. The impact of the mining investment downturn was clearly apparent, as was the partial offset from residential construction. The key result was really the weakness in household consumption. The decline in the terms of trade has had a material impact on real household incomes, restricting momentum. This is a risk to the RBA's expectation of a strengthening consumer. Next week the focus shifts to Wesptac-MI consumer sentiment and the labour market.

2 topics

Elliot Clarke
Elliot Clarke
Senior Economist

An Economist based in Sydney Australia with a particular interest in macro-financial analysis of the Australian and global economy. Having spent a number of years with the Reserve Bank of Australia and Westpac Economics, monetary policy, the...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment