Australian GDP puzzle taking shape

Just briefly in today’s #5in5withANZ:

Global markets were quiet overnight due to the US Labor Day holiday. The final pieces of Australia’s GDP puzzle fall into place today. Job ads show a cooling Australian labour market, and we look at which state capital house prices are pulling away.

5 things in 5 minutes:

1. Today we get the final pieces of the puzzle for Australia’s April-June economic growth data. ANZ Senior Economist Catherine Birch is expecting net exports and government spending to provide some support.
2. Catherine says growth in salaries and wages of 0.7% between April and June in yesterday’s business indicators was weaker than expected, as were company profits, which were down 5.3% in the quarter.
3. ANZ-Indeed job ads dropped for the seventh month in a row in August. ANZ Economist Madeline Dunk says the series reflects a gradual cooling in the jobs market.
4. Australia’s house prices rose 0.5% in August, which was the 19th monthly rise in a row, according to Corelogic data. Maddy says the numbers reveal a split between Australia’s capital cities.
5. Activity in China’s manufacturing sector contracted for the fourth month in a row in August. ANZ Senior China Strategist Zhaopeng Xing is expecting more economic policy support in coming weeks, starting with China’s property sector.

In our bonus deep dive interview, ANZ Senior Economist Miles Workman digs into New Zealand’s latest jobs data to highlight which sectors, regions and age groups are feeling the brunt of monetary and fiscal policy tightening.

Cheers

Bernard

PS: Catch you tomorrow a final forecast of how fast Australia’s economy grew in the April-June second quarter.

#5in5withANZ also free daily directly on Spotify, Apple Podcasts, YouTube and Substack from 6 am Sydney/Melbourne time. FYI Richard Yetsenga and ANZ Institutional