Data dump points to modest economic expansion
New data reinforce expectations the economy expanded modestly in the first quarter of 2021, ahead of Wednesday GDP figures.
March quarter data will reinforce expectations that the Australian economy expanded modestly in the first three months of 2021 after an exceptionally strong rebound in the previous six months following last year’s Covid-19 shock.
While company profits were weaker than expected, net exports and inventories were considerably stronger than expected for the quarter. April building approvals didn’t fall as much as expected.
Company profits fell 0.3 per cent versus a 3.4 per cent rise expected by economists surveyed by Bloomberg.
But inventories rose 2.1 per cent versus 0.2 per cent expected, the balance of payments rose to $18.3bn versus $17.7bn expected and net exports will detract 0.6 percentage points from GDP, whereas economists expected a 1.2 percentage point detraction.
Building approvals fell 8.6 per cent versus an expected fall of 10 per cent, with private sector housing approvals up 4.6 per cent.
The Australian dollar rose slightly to a four-day high of $US77.64c after the data were released.
Ahead of Tuesday’s data, economists were expecting the March quarter national accounts, released on Wednesday, to show a 1.1 per cent rise in GDP quarter on quarter and a 0.3 per cent rise year-on-year.
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