Growth, inflation and labour market all easing
GDP bounced back strongly in the June quarter, growing at an annualised 4.0% rate. Early indicators for the September quarter are positive. Tapering of asset purchases under QE is continuing and we expect the end of the program to be announced after the Fed’s October meeting.
After declining at the start of the year, GDP bounced back strongly in the June quarter, growing at an annualised 4.0% rate. While this included a sizeable contribution from stocks, the improvement was broad based with consumption and business and residential investment all strengthening, as did government expenditure, while net exports were less of a drag. Revisions to past GDP estimates also suggest there was more momentum in the economy over the last year than previously thought.
For further analysis download the full report.
© National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.