It was a big week this week with the release of GDP data. This data revealed the economy flexed its muscles to grow solidly, despite an Omicron wave and weather disruptions during the March quarter. A consumer spending slash underscored the growth outcome in the quarter, so much so that the gain in consumer spending in the two quarters to the March quarter was the second fastest on record.
Spending growth in the quarter was led by the industries that have been at the coalface of closed borders and mobility restrictions, notably, transport services, which includes airline travel, hotels, cafes & restaurants and recreation & culture. Green shoots are emerging in these industries. Indeed, economic conditions across industries are converging, a theme that is likely to continue over the rest of this year as spending rotates back to services (and away from goods).
See our short video to learn more.
Cost Concerns Spread from Households to Businesses
RBA hikes rates as ultra-cheap money coming to an end
RBA turns corner, rates to rise in June
This document has been created by Westpac Financial Services Limited (ABN 20 000 241 127, AFSL 233716). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. Projections given above are predicative in character. Whilst every effort has been taken to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not consider known or unknown risks and uncertainties. The results ultimately achieved may differ materially from these projections. This document may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, Westpac Financial Services Limited does not accept any responsibility for the accuracy or completeness of or endorses any such material. Except where contrary to law, Westpac Financial Services Limited intends by this notice to exclude liability for this material. Information current as at 10 December 2021. © Westpac Financial Services Limited 2021.