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ARTICLE · 30 APRIL 2014

Outlook for Australian economy

The current growth resurgence is based on relatively weak fundamentals and is unlikely to last over the medium term.

AustraliaStrategy

Key economic indicators

Indicator Last reported result Comments
Gross Domestic Product (GDP)
0.8% q/q Dec'13
2.8% y/y
GDP is the official measure of economic growth in Australia. The December quarter saw strong contributions from Net Exports as commodity volumes rose and capital imports fell. Household consumption rose by 0.8% and Public Investment increased by 4.3%.
12mth Outlook: Positive
Retail Trade
1.2% m/m Jan'14 6.20% y/y Retail trade is at a 4 year high and now well above the long term average.
12mth Outlook: Positive
New Orders PMI
Services
50.0 Feb'14 Manufacturing
55.2 Feb'14
The latest survey indicates that manufacturing activity is improving while services are flat. (A reading above 50 means that new orders are improving, a reading below 50 means that new orders are contracting.)

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