Australia: GDP likely rebounded 0.8% in Q4 – RBC CM

Analysts at RBC Capital Markets expect that the Australian output rebounded 0.8%q/q in Q4 and even though some disruptions to activity in Q3 hampered activity in both the mining and construction sectors, both of which are likely to have rebounded a little in Q4.

Key Quotes

“Household spending also appears to have recovered into year-end, though the decline in business investment likely restarted.  In the context of a 0.5%q/q decline in output in Q3, a 0.8%q/q outturn would represent a modest recovery and still leaves the y/y rate at an unimpressive 2%. Growth is likely to pick up modestly through 2017 as the drag from falling mining investment wanes and construction activity increases in H1.”