Australia

Australia's economy grew just 0.3% quarter-over-quarter in Q1, significantly below the 0.5% consensus forecast and sharply lower than the 0.9% growth recorded in Q4. On an annual basis, GDP rose 2.5%, matching the previous quarter but missing expectations of 2.7%.
Australia’s construction sector remained under pressure in April, although the decline in building approvals was less severe than in the previous month. Building approvals fell 3.4% month-over-month, worse than expectations for a 1.5% decline, following a sharp 10.5% drop in March.
Australia’s private capital expenditure surged 6.5% quarter over quarter in Q1, massively beating the 1.2% forecast and accelerating sharply from the previous 0.7% increase.
Australia’s construction activity surged in the first quarter, with Construction Work Done rising 3.4% quarter over quarter, far above the 0.8% forecast and sharply higher than the previous 0.2% increase.
Australia’s unemployment rate rose to 4.5% in April from 4.3%, coming in above market expectations of 4.3% and signaling a weakening labor market. Meanwhile, employment unexpectedly fell by 18,600 jobs, missing forecasts for a 16,700 increase and reversing the previous month’s 23,300 gain.
Australia’s home loans data showed a sharp slowdown in lending activity.

Home Loans (MoM, Q1): -4.3%
Previous: +9.4%
Australia’s NAB Business Confidence index remained deeply negative in April, though it showed a slight improvement. Business confidence came in at -24 versus the previous -29 reading.
Australia’s building approvals fell sharply in March, reversing the previous month’s surge.

Building approvals dropped 10.5% month-on-month in March, matching market expectations, after jumping 31.0% in the previous month.
Australia’s March trade balance unexpectedly swung to a A$1.841 billion deficit, far below expectations for a A$4.380 billion surplus and down sharply from the previous A$5.026 billion surplus.
Australia’s central bank kept rates in line with expectations but signaled a tighter stance compared to the previous meeting.

The Reserve Bank of Australia (RBA) raised its policy rate to 4.35% in May, matching market expectations of 4.35%, up from the previous 4.10%. The move indicates continued concern over inflation persistence
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