Australia: Expect a solid 1.0% q/q rise in Q1 GDP - Nomura

Analysts at Nomura offer a sneak preview of what to expect from Wednesday’s Australian GDP release for the first quarter due at 0130 GMT.

Key Quotes:

“We expect a solid 1.0% q/q rise in Q1 GDP, bouncing back from 0.4% in Q4 2017. 

This reflects a solid contribution from net exports, led by higher resource export volumes, which were held up in Q4 by weather and an industrial dispute. 

We also see a below-average 0.4% q/q rise in private consumption, based on softer retail sales data.

A solid rise in business investment. 

And another increase in government spending. 

Partial data early next week, including company profits, net exports and government spending could cause consensus and our expectations to shift early next week.”