Australian June quarter GDP data was out earlier today:

More now, NAB:

  • Government spending has certainly surprised on the upside, up 2.4% in underlying terms in the quarter and adding 0.5ppt to real GDP growth. This reflects stronger government investment (particularly at the state level) as well as government consumption (largely the wage bill with increases at all levels of government)
  • Otherwise growth outcomes by expenditure category were mixed
  • Recovery in the non-mining economy continued
  • Terms of trade rose by 2.3% in Q2, and adding to income growth for the first time in approximately three years. This has supported measures of national income in the quarter, with real gross domestic income rising 0.9% q/q and real net national disposable income rising 0.2% q/q.
  • Nominal GDP was even stronger at 1.3% q/q and 3.4% y/y.
    Labour productivity measures were generally stronger in the quarter, with GDP per hour worked rising by 1.2% q/q and market productivity at 1.5%, predominantly driven by a decline in aggregate hours worked in the quarter against a backdrop of relatively strong GDP outcome.
  • The GDP deflator - the broadest measure of inflation - rose 0.7% q/q. However measures of consumer prices were subdued overall to be consistent with the modest outcome seen in the Q2 CPI - the household consumption deflator rose by 0.4% q/q, while the chain price index rose 0.1% q/q.