Australian first quarter GDP beat estimates, rising 1.10% on the quarter with the year over year GDP recorded at 3.10%. UK manufacturing PMI rebounds in May, rising back above 50 and US ISM Manufacturing PMI expands to 51.3 in May.

Today’s Economic events

  • Australia AIG Manufacturing Index 51.0 vs. 53.4
  • Japan capital spending q/y 4.20% vs. 1.90%
  • China manufacturing PMI 50.1 vs. 50.0; non-manufacturing PMI 53.1 vs. 53.5 previously
  • Australia GDP q/q 1.10% vs. 0.60%; y/y 3.10% vs. 2.70%
  • China Caixin manufacturing PMI 49.2 vs. 49.3
  • Japan final manufacturing PMI 47.7 vs. 47.6
  • Switzerland GDP q/q 0.10% vs. 0.30%
  • UK Nationwide HPI m/m 0.20% vs. 0.30%
  • Australia commodity prices y/y -10.0% vs. -9.40%
  • Switzerland retail sales y/y -1.90% vs. -0.80%
  • Switzerland manufacturing PMI 55.8 vs. 54.2
  • Italian manufacturing PMI 52.4 vs. 53.5
  • France manufacturing PMI 48.4 vs. 48.3
  • German final manufacturing PMI 52.1 vs. 52.5
  • Eurozone final manufacturing PMI 51.5 vs. 51.5
  • UK manufacturing PMI 50.1 vs. 49.6
  • The UK net lending to individuals m/m 1.6bn vs. 5.3bn
  • US manufacturing (Markit) PMI 50.7 vs. 50.5
  • US ISM manufacturing PMI 51.3 vs. 50.5

    • Coming up

  • New Zealand global dairy index

    • Australia GDP rises 3.10% on the year

    First quarter economic growth in Australia extended the gains from the fourth quarter, marking one of the strongest quarterly gains in two years. On a quarter over quarter basis, GDP grew 1.10%, beating expectations of a 0.60% increase in the first quarter of 2016. The previous fourth quarter’s GDP data was also revised higher from 0.60% to 0.70%, data from Australian Bureau of Statistics showed on Wednesday. On a year over year basis, Australian GDP was up 3.10% on a seasonally adjusted basis, up from a downward revised 2.90% YoY growth in Q4, 2015. The GDP was expected to beat estimates after the first quarter current account deficit narrowed yesterday.

    However, despite the upbeat data, the sub-readings showed a general weakness. Terms of trade, which reflects the fall in the price of exports relative to imports fell 1.90% on the quarter and 11.50% on a year over year basis. Growth was seen coming from exports and household consumption expenditure which contributed 1.0% and 0.40% respectively. Exports increased as mining production was up 6.20%, while in the services sector, financial and insurance services grew 1.80%. While the Australian dollar reacted strongly to the data, the Aussie gave up its gains by the Europe trading session with the Australian ASX falling 1.10%.

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