US LNG exports surge but will buyers in China turn up?
Investing.com-- Australia’s economy is expected to have expanded by 0.6% quarter-on-quarter in the final three months of 2024, with a possibility of a stronger 0.7% print, ANZ Research said in a note.
ANZ analysts pointed to a recovery in household consumption, which is forecast to rise 0.5% in the fourth quarter after stagnating in the third quarter and contracting 0.3% in the first three months of 2024.
Increased spending on discretionary items, particularly clothing and dining, contributed to the upturn. Additionally, dwelling investment grew by 0.7%, while business investment declined by 0.7%, creating a drag on overall growth, analysts wrote.
Net exports are set to add 0.2 percentage points to GDP, an improvement from previous expectations, supported by a 3.2% rise in total exports, according to ANZ.
Higher iron ore prices and strong rural goods exports offset a 0.9% drop in imports, which was led by increased purchases of electric vehicles, ANZ’s note showed.
On the production side, GDP(P) is expected to rise 0.6%, with growth contributions from the transport, retail, healthcare, and construction sectors.
Manufacturing, however, likely contracted during the quarter, analysts said.
Despite a narrowing current account deficit of A$12.5 billion in the fourth quarter, ANZ analysts remain watchful of external risks.
The data reinforces expectations that Australia’s economic recovery remains on track, though headwinds persist from weak business investment and ongoing global uncertainties, analysts added.