Australia: Positive news for Q4 growth – Westpac
|The Business Indicators survey provides an update on business inventories and a partial update on incomes. Inventories were largely as expected, while incomes were a little more resilient than anticipated, economists at Westpac Institutional Bank brief.
Key quotes
“Inventories edged higher in the final quarter of 2019, increasing by 0.3%. That result, along with a slight revision to the Q3 outcom (from a -0.4% to a -0.2%), will see inventories add 0.16ppts to growth in the December quarter. That broadly met our expectations (a forecast +0.1ppt).”
“Profits fell sharply, which was to be expected, down by 3.5% (market median -1.3% and Westpac -4.2%). Mining profits took a hit as commodity prices moderated from recent highs.”
“Wage incomes grew by 1.0% in the quarter, a fraction above our priors (a forecast 0.9%).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.