Weekly Updates

In Australia, employment rose more than expected in August, but the unemployment rate picked up to a nearly five-year high as more people entered the workforce. The S&P Global PMIs pointed to slower expansion in services and renewed contraction in manufacturing. RBA officials speaking this week maintained a hawkish tone.

Abroad, the FOMC and Bank of Japan increased their policy rates, as expected. US retail sales rose strongly in August. Chinese economic activity data for August were again underwhelming.

In Australia, NAB business conditions deteriorated to the lowest level in six years in August, with business confidence also easing.

In Australia, the annual rate of real GDP growth slowed in Q2, but not as much as expected, with increased demand for electric vehicles supporting household consumption.

In Australia, the RBA Monetary Policy Board minutes came in on the hawkish side, stressing that members will focus on the upside risk to the inflation outlook. Meanwhile, the July inflation figures surprised to the upside, leading to a re-intensification of RBA cash rate hike expectations.

In Australia, employment saw an unexpected decline in July, while the unemployment rate picked up. Wages growth remained moderate in Q2. Westpac consumer sentiment improved in August, but remained weak. The S&P Global flash PMIs pointed to slower, albeit still decent expansion in August.