Weekly Updates

In Australia, NAB business conditions improved slightly in August, while business confidence deteriorated somewhat, but both measures remained around their respective long-term averages. The Westpac Melbourne Institute consumer sentiment index retreated from a 3.5-year high in September, while inflation expectations rose.

In Australia, real GDP rose more than expected in Q2, supported by private consumption growth. This was followed by a further increase in the household spending indicator in July. The current account deficit narrowed in Q2, mainly due to an improvement in the net primary income balance, while the goods trade surplus rose in July amid higher gold exports.

In Australia, the RBA Monetary Policy Board minutes confirmed that cash rate cuts are likely to continue in the coming months. The July CPI indicator was an upside surprise. Construction work done rose more than expected in Q2, but private sector capex growth disappointed. Private credit growth accelerated in July, driven by an increase in business borrowing.

In Australia, the Westpac Melbourne Institute consumer sentiment index surged to a 3.5-year high in August. The S&P Global composite PMI indicated the fastest pace of expansion in over three years.

In Australia, the RBA cut its cash rate target by 25bps to 3.60%, as expected, and downgraded its productivity and GDP growth estimates. Data-wise, Australian wages growth held steady in Q2, which was followed by a rebound in employment growth and a slight decline in the unemployment rate in July. NAB business conditions deteriorated in July, but business confidence improved.

In Australia, the household spending indicator growth in June missed market expectations but was still decent. The Melbourne Institute inflation gauge pointed to a rise in headline inflation in July, amid lower energy bill relief payments. Living cost indexes rose at a slower pace for most household types in Q2. The goods trade surplus widened in June.