Australian GDP grew 0.4% qoq in Q1, matched expectations. Annually, growth slowed to 1.8% yoy, down from 2.3% yoy and matched expectations too. But the details are rather weak. Government spending was the main contributor to growth, while rose 0.8%. Household spending slowed to 0.3% and contributed a modest 0.1%. And, dwelling investment contracted by -2.5% while slowing housing market has resulted in significant falls in ownership transfer costs. Non-mining investment rose 2.0% while mining investment dropped -1.8%.
Gross domestic product, Volume measures: Seasonally adjusted
Separately, RBA Head of Economic Analysis Alexandra Heath said in a report that ” mining investment is probably around its trough and is likely to pick-up gradually over the next year or so”. And, “resource exports are also expected to contribute to GDP growth before plateauing at a new, higher level.”
