Slight rise tipped for September GDP figures
The state of the Australian economy will undergo a health check and key growth figures will be announced.
GDP figures for September will be released on Wednesday and economists are forecasting moderate growth for the three-month period.
Growth is expected to pick up to 0.7 percent from the 0.6 percent seen in the June quarter, according to CommSec chief economist Ryan Felsman.
It is estimated that the annual growth rate of the period will increase from 1.8 percent to 2.2 percent.
NAB Senior Associate Economist Jessie Cameron said GDP data was expected to rise more than initial forecasts.
“Partial indicators point to some loss of momentum in household consumption growth in the third quarter, but overall spending remains strong,” he said.
“The partial portion of business and residential investment indicates a larger-than-expected contribution to growth in the quarter.
“This strength is expected to more than offset the slight negative contribution from trade, while stocks will likely remain flat.”
The decline in major infrastructure projects is also expected to lead to a decline in government spending as a share of GDP.
On Thursday, the monthly household expenditure indicator for October will also be published.
Spending is expected to increase by 0.6 percent during the month; This follows a recession in September due to discretionary spending.
The figures follow a jump in monthly inflation for October from 3.6 percent to 3.8 percent, effectively dashing hopes of a rate cut when the Central Bank meets for its final meeting of the year a week later.
Inflation figures are above the Central Bank’s own forecasts for the end of 2025 and well above the central bank’s preferred two to three percent range.
The data had led to speculation that the Central Bank might even increase interest rates.
U.S. stocks rose during a brief post-Thanksgiving session on Friday, driven by retail gains and a rebound in technology stocks.
Expectations for the Federal Reserve to cut interest rates in December strengthened throughout the week, helping to support sentiment in stock markets.
Dow Jones Industrial Index increased by 0.61 percent to 47,716.42 points, S&P 500 index increased by 0.54 percent to 6,849.09 points and Nasdaq Composite increased by 0.65 percent to 23,365.69 points.
Locally, the ASX recorded its best weekly performance since May, breaking a month-long losing streak.
The S&P/ASX200 index fell 3.2 points on Friday, falling 0.04 percent to 8,614.1 points, while the All Ordinaries index rose 6.7 points, or 0.08 percent, to 8,918.7 points.
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