Australia's Q1 GDP Growth Misses at 2.5% as Severe Weather and Weak Demand Bite

3 articles · Updated · CNBC · Jun 3

Australia's economy grew 0.3% in the first quarter from the previous three months, missing the 0.5% forecast and slowing from 0.8% in Q4.
ABS data showed annual growth at 2.5%, below the 2.6% estimate, as weak household spending, lower government consumption and severe weather hit mining output and exports.
Markets still leaned toward further Reserve Bank of Australia tightening after May's 25-basis-point hike lifted the cash rate to 4.35%, with policymakers focused on inflation and private demand.
Bank of America said the Q1 figures are too early to show major fallout from the Middle East conflict, but disrupted Hormuz oil flows could raise energy costs and further weaken second-quarter consumption.

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