Australia bounces back to robust GDP growth

Further, the strong September performance was the best quarterly growth rate in five years, according to Commsec chief economist Craig James.

The Australian dollar rose as much as 0.1 per cent immediately after the release by the Australia Bureau of Statistics, but quickly pulled back to be 0.1 per cent lower at $0.7652.

The economy shrunk by 1.3% in the fourth quarter alone, the figures showed.

That makes a mockery of assertions that the economy was heading for recession (after the September quarter's contraction) and claims as late as yesterday on ABC morning TV that the economy had not made the transition from the mining boom and remained too reliant on mining.

"The surge in February builds on a recovery from the sluggish performance in the third quarter of previous year and marks a fifth month of expansion", said Australian Industry Group chief executive Innes Willox.

National Australia Bank economics director David de Garis said the drop in exports was driven by a $671 million, or 39 per cent, slump in gold exports.

Wednesday's data show household consumption contributed 0.5 percentage points to GDP growth, with net exports contributing 0.2 percentage points.




However, the nation sprang to a record trade surplus of $3.5 billion in December on a massive rebound in commodity prices and an increase in the volume of resources being exported.

Global Research, Standard Chartered bank, London, said that while the analysts were expecting a full year contraction (the actual print of -1.5% y/y is marginally better than our expectation of -1.7% y/y), it's the detail that makes for the more important reading. Public capital formation added 0.3 percentage point.

He said in the mid-year economic and fiscal outlook Treasury projected 2.75% growth in 2017-18.

The manufacturing sector grew on a quarter-on-quarter basis by 1.89 per cent but declined over the year by 4.32 per cent reflecting the problems that the sector faced during the year, due to a combination of factors.

The metal ores sub-sector grew by 7.03 per cent in Q4 of 2016 as compared to 6.93 per cent in the last quarter of 2015, thus justifying the priority that the federal government continues to give to solid minerals.

"The Australian economy is performing well but, on the domestic front, weak wage growth is crimping household demand", she said.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Perth Adele impersonator joins her idol for onstage selfie and singalong
The Grammy and Oscar victor could add stand-up comedian to her talents, as she delighted the crowd with several amusing anecdotes. Singer Adele was left starstruck when she pulled a drag queen impersonator onstage with her and handed over the microphone.

The Bachelor: People Were Sad/Thrilled That Corinne Got Sent Home
Man, I understand that even if Nick loves Raven , he can't explicitly reciprocate, since that blows the whole show, but still. Maybe don't fish for it right now! I will admit that it did look a lot more promiscuous than i think it did.

Swedes never heard of Fox News' Swedish 'security advisor'
So until O'Reilly addresses the situation tomorrow, Twitter has its own best guesses, theories and snipes about Bildt. " We do not know who he is ", it told the Swedish daily.

Police sharpshooter accidentally opens fire during French President Hollande's speech, two injured
A police sharpshooter accidentally shot two people while French President Francois Hollande was delivering a speech Tuesday. Mr Hollande was speaking at the opening of a high speed rail service between Tours and Bordeaux when the shot was sacked .

8-year-old shot to death moments after surviving auto crash
After the impact, a female driver in one of the cars suddenly whipped out a gun, and started blasting away, local police said. After the crash, authorities said the driver of the sedan got out of the vehicle and opened fire, hitting Atkins.

Nurse accused of secretly recording eight patients
Nude videos and photos of seven other patients who had all come under Close's care were subsequently found on his iPhone. James Close, a 45-year-old licensed practical nurse, was the technician assigned to help the teen during her treatments.

ECO summit to help advance economic prosperity in region: PM
The Turkish president also underscored the need for greater cooperation in agriculture, environment and tourism. "First of all, we have to take steps to increase intra-trade among member states.

Try crepes with a twist this Pancake Tuesday
Britons are looking forward to making and devouring pancakes with family and friends to celebrate Pancake Day today. Heat a small frying pan and grease with butter then ladle in enough batter to coat the base of the pan.

Vice President Pence Swears in Wilbur Ross as US Commerce Secretary
Ross has also sought to ease concerns about whether the White House would try to politicize climate science. Former commerce secretaries have praised him, including one who served under former president Barack Obama.

Jefferies Group Weighs in on Domino's Pizza Inc's FY2018 Earnings (DPZ)
Analysts await Domino's Pizza Inc (NASDAQ: DPZ ) to report earnings on Feb, 28 for the fiscal quarter ending Dec 2016. Oasis Management Co Ltd. acquired a new stake in shares of Domino's Pizza during the second quarter worth $5,190,000.

Post-demonetisation slow down in GDP
Similarly, growth in the mining sector is projected to slowdown to 1.3 per cent from 12.3 per cent in 2015-16. Personal consumption expenditures: Increased by 1.9%, down slightly from last estimate's 2%.

Mets to keep David Wright from throwing because of shoulder impingement
Reyes posted a.267/.326/.443 slash with 25 extra base hits, including eight home runs, in 60 games last season. Another baseball season is upon us, and unfortunately, so is another David Wright injury.

England 36-15 Italy by David Nicholson at Twickenham
The visitors' head coach, Conor O'Shea, said: "We have to think differently, like we did today". The law says you require one from each team over the ball bound together to create a ruck.

Pep has Calamity Bravo's back as City reach q-finals
Ultimately, Huddersfield was outclassed, which was to be predicted after making nine changes from its first-choice lineup. Soon at it again Aguero assisted Pablo Zabaleta sealing the victory within the first half.

David Moyes relishing his Everton return with Sunderland
I wanted them to take the ball a bit more and be braver in the second half and I thought we did that. Romelu Lukaku in particular seems to be on a hot streak, scoring 9 goals in his last 10 games.


More News

News
More News