Little Killer
06-02-2009, 10:01 PM
AUSTRALIA has dodged a bullet and avoided falling into recession.
Today's national accounts confirm the economy grew 0.4 per cent in the March quarter, thanks to a strong export performance, record retail consumption and positive housing figures.
The positive GDP number, which follows a revised 0.6 per cent fall in the December quarter, means the economy has avoided recording two consecutive quarters of negative growth -- the technical definition of a recession.
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Over the year to March 2009, GDP rose by 0.4 per cent.
Household final consumption expenditure rose 0.6 per cent in the quarter and was up 0.8 per cent over the year to the March quarter, adjusted.
But some economists said the reprieve for the economy was irrelevant with the burden of a recession still weighing heavily on job seekers and business.
"Beneath the headline is a corporate sector in distress,'' said TD Securities senior strategist Annette Beacher.
"And a corporate sector in distress will see the converse of the commodities boom: falling profits and investment, job shedding and price falls.''
The unemployment rate had an unexpected fall from 5.7 per cent to 5.4 per cent in April.
However economists believe the jobless rate will record a rise when official figures are released tomorrow.
The news gave the share tyrading a shot in the arm, with the ASX 200 trading 0.85 per cent higher at 11.30am.
Associated data with today's growth figure release showed total investment in dwellings fell 5.6 per cent in the quarter, adjusted, to be down 5.7 per cent in the year to the March quarter.
Total gross fixed capital formation fell 4.8 per cent in the quarter and was down 1.3 per cent over the year, adjusted.
Domestic final demand declined 1.0 per cent in the quarter and was 0.5 per cent higher over the year, adjusted.
Gross national expenditure (GNE) fell 1.0 per cent in the quarter and was down 1.4 per cent over the year, adjusted.
Kevin Rudd you bloody legend. Yes I know we are in record debt. But when the recover starts we will be in best position to repaid the debt.
Today's national accounts confirm the economy grew 0.4 per cent in the March quarter, thanks to a strong export performance, record retail consumption and positive housing figures.
The positive GDP number, which follows a revised 0.6 per cent fall in the December quarter, means the economy has avoided recording two consecutive quarters of negative growth -- the technical definition of a recession.
More business news: See BusinessDaily
Over the year to March 2009, GDP rose by 0.4 per cent.
Household final consumption expenditure rose 0.6 per cent in the quarter and was up 0.8 per cent over the year to the March quarter, adjusted.
But some economists said the reprieve for the economy was irrelevant with the burden of a recession still weighing heavily on job seekers and business.
"Beneath the headline is a corporate sector in distress,'' said TD Securities senior strategist Annette Beacher.
"And a corporate sector in distress will see the converse of the commodities boom: falling profits and investment, job shedding and price falls.''
The unemployment rate had an unexpected fall from 5.7 per cent to 5.4 per cent in April.
However economists believe the jobless rate will record a rise when official figures are released tomorrow.
The news gave the share tyrading a shot in the arm, with the ASX 200 trading 0.85 per cent higher at 11.30am.
Associated data with today's growth figure release showed total investment in dwellings fell 5.6 per cent in the quarter, adjusted, to be down 5.7 per cent in the year to the March quarter.
Total gross fixed capital formation fell 4.8 per cent in the quarter and was down 1.3 per cent over the year, adjusted.
Domestic final demand declined 1.0 per cent in the quarter and was 0.5 per cent higher over the year, adjusted.
Gross national expenditure (GNE) fell 1.0 per cent in the quarter and was down 1.4 per cent over the year, adjusted.
Kevin Rudd you bloody legend. Yes I know we are in record debt. But when the recover starts we will be in best position to repaid the debt.