April - June GDP growth for Australia (second quarter 2016). From the Australia Bureau of Statistics.

+0.5% q/q

  • expected +0.6%,
  • Revision to the prior, +1.0% (from +1.1%)

and 3.3% y/y

  • expected 3.3%,
  • the prior is at +3.0%, revised from +3.1%

The Australian economy grew by 0.5% in seasonally adjusted chain volume terms in the June quarter

  • Final consumption expenditure increased 0.8%, contributing 0.6 percentage points to growth in GDP
  • The Terms of trade increased by 2.3% in seasonally adjusted terms.

In trend terms GDP grew 3.1% through the year, the largest contributors to this growth were:

  • Mining (0.8 percentage points),
  • Financial and insurance services (0.5 percentage points),
  • Public administration and safety (0.3 percentage points),
  • Construction (0.2 percentage points)
  • and Wholesale trade (0.2 percentage points)

Manufacturing (-0.2 percentage points) was the largest detractor in trend terms.

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I posted yesterday on the contribution to the GDP that would be made by higher government spending in Q2. It added 0.3% to growth.

Household spending added 0.2% to the growth figure.

Household savings ratio at 8%

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I'll post more on responses/reactions etc. as they come