Soft US manufacturing raises slowdown concern

Just briefly in today’s #5in5withANZ podcast below:

Global stocks fall after weak US manufacturing data raises fears about a deeper slowdown. The Australian dollar is down over 1%. Australian GDP may have grown a bit in Q2. South Korean inflation hits the central bank’s target.

5 things in 5 minutes

1. The two final pieces of Australia’s GDP data puzzle came out on Tuesday. ANZ Australia Senior Economist Catherine Birch says net exports were weaker than expected. Catherine’s final forecast is for 0.1% growth for the June quarter and 0.8% growth from a year ago.
2. The other partial indicator was government spending and investment data, which was stronger than expected.
3. South Korea’s annual inflation dropped to 2% in August, from 2.6% in July and hitting the Bank of Korea’s target. ANZ Chief Economist for Southeast Asia and India Sanjay Mathur says the Bank of Korea might be able to cut in October.
4. We at 5-in-5 were at the ANZ-sponsored AFR Asia summit in Melbourne yesterday. Australia’s Foreign Minister Penny Wong spoke about a growing pipeline of projects being developed in South East Asia through Export Finance Australia, particularly in energy transition and infrastructure.

In today’s bonus deep dive interview:

ANZ Group Chief Economist Richard Yetsenga reviews Australia’s trade and investment relationship with ASEAN from the AFR Asia summit after Penny Wong’s comments.

Cheers

Bernard

PS: Catch you tomorrow with a review of Australia’s Q2 GDP and what it could mean for interest rates.

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