MNI BRIEF: Aussie Q1 GDP +0.2%, Productivity Measures Weaker

Australia’s GDP rose 0.2% in the March quarter, 20 basis points lower than expected, and 1.3% y/y, according to Australian Bureau of Statistics data released Wednesday.

“Public spending recorded the largest detraction from growth since the September quarter 2017,” said Katherine Keenan, head of national accounts at the ABS. GDP per capita fell 0.2%, following a 0.1% rise in Q4. 

GDP per hour worked, a key productivity measure, fell 1% y/y, while real unit labour costs grew 2.6%. The RBA expects productivity growth to reach 0.9% by the December quarter. (See MNI RBA WATCH: Board's Dovish Turn Included Debate Of 50bp Cut)