Weekly Updates

In Australia, the February CPI indicator suggested that inflation remained close to the mid-point of the RBA target range. The Judo Bank flash PMIs showed faster expansion in March, but confidence regarding future conditions weakened. The 2025-26 Commonwealth Budget confirmed manageable deficit and debt levels at the federal level.

In Australia, employment saw an unexpected drop in February, but the unemployment rate remained steady at 4.1% amid lower participation. The Westpac leading index suggested above-trend economic activity growth within three to nine months.

In Australia, NAB business conditions improved a little in February, but business confidence declined back into negative territory. Westpac consumer sentiment bounced in March, supported by the recent RBA cash rate cut. Melbourne Institute consumer inflation expectations dropped to the lowest level in 3.5 years.

In Australia, GDP growth accelerated in Q4 in line with expectations, supported by stronger consumer spending. Retail sales and household spending indicator suggested that improvement in private consumption continued into 2025. The current account deficit narrowed in Q4, followed by a rise in goods trade balance in January.

In Australia, the monthly CPI indicator suggested that the annual rate of headline consumer price inflation remained at 2.5% in January, while annual trimmed mean inflation ticked up to 2.8%. Private sector credit growth steadied in January. Private sector capex unexpectedly declined in Q4, while growth in construction work done slowed.

In Australia, the RBA cut its cash rate target by 25bps to 4.10% as expected, but its message was hawkish with no guidance about future decisions. Employment saw another solid gain in January, but the unemployment rate ticked up to 4.1%. Wages growth slowed further in Q4 2024. The Judo Bank flash PMIs pointed to further modest expansion in the private sector.