Australia: Q2 GDP likely to post +1%/qtr growth - TDS

Research Team at TDS, suggests that Australia’s Q2 GDP is released tomorrow after the Q1 GDP was strong at +1.1%, but that was all volumes and prices collapsed.

Key Quotes 

“For Q2, ahead of tomorrow, we can see non-mining activity holding up well, and incomes are strong with terms of trade +1.8% and wages/salaries +0.8% in the qtr. This could be a turning point where monetary policy is working, and the RBA can stay at 1.5%. We pencil in +1%/qtr for GDP tomorrow.”