Australia's economy soars in strong start to 2018

News Image

MG News | June 06, 2018 at 12:52 PM GMT+05:00

0:00

Australia's economy grew at a faster-than-expected pace at the start of this year, with exports and business inventories rising even as consumer spending remained weak, official data showed Wednesday.

The 1.0 percent growth in the first three months of 2018 was a sharp rise from the revised 0.5 percent in the previous quarter, taking the annual rate to 3.1 percent.

The expansion was the strongest since the June quarter of last year, and above central bank and analysts' expectations.

The new figures sent the Australian dollar jumping a quarter of a cent to 75.56 US cents.

"The Australian economy is once again back up above the long-running average (of about 3.0 percent) again," Treasurer Scott Morrison told reporters in Canberra.

"Australia is leading the advanced economies of the world, bettering the average growth in the OECD, and, of course, all of the G7 nations once again."

The economy has experienced an uneven period of growth as an unprecedented investment in mining ended, with the Reserve Bank of Australia (RBA) cutting interest rates to a record low of 1.50 percent to boost non-resources industries.

While businesses have posted stronger profits and boosted inventories, consumer spending has been a weak point amid tepid wages growth.

"While this is definitely a strong print in terms of the headline magnitude, the consumption story is still pretty soft," JP Morgan economist Tom Kennedy told AFP.

 “That might be symptomatic of the saving rate already being very low and wage levels being very benign. Households are constrained... on how much more they can spend."

Uncertainty about consumer spending and weak wages growth have seen economists forecast the Reserve Bank to remain on the sidelines for several more months, with expectations of a rate rise in 2019.

APP

Related News

Name Price/Vol %Chg/NChg
KSE100 137,324.65
41.35M
0.69%
944.68
ALLSHR 85,057.04
66.04M
0.48%
408.68
KSE30 41,863.91
7.49M
0.76%
317.68
KMI30 193,133.42
7.22M
0.74%
1413.66
KMIALLSHR 56,066.82
46.79M
0.43%
239.08
BKTi 37,923.49
0.38M
0.25%
95.88
OGTi 27,679.55
0.30M
0.03%
8.87
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,650.00 119,915.00
118,035.00
-980.00
-0.82%
BRENT CRUDE 68.79 69.01
68.74
0.27
0.39%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
1.80
1.90%
ROTTERDAM COAL MONTHLY 104.50 0.00
0.00
-1.05
-0.99%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.74 66.99
66.58
0.36
0.54%
SUGAR #11 WORLD 16.55 16.67
16.40
-0.01
-0.06%

Chart of the Day


Latest News
July 17, 2025 at 09:27 AM GMT+05:00

NBP issues foreign exchange rates


July 17, 2025 at 09:25 AM GMT+05:00

Asia markets subdued amid global uncertainty


July 17, 2025 at 09:10 AM GMT+05:00

Pakistan, El Salvador partner on bitcoin, digital asset


July 17, 2025 at 06:31 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 16, 2025 at 11:00 PM GMT+05:00

SBP raises Rs342bn in PIB Auction



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg