Figures to show extent of govt's GDP boast

National accounts for the March quarter will gain more significance than usual due to their arrival in the middle of an election campaign.

Next week's national accounts will be a key debating point on the federal election trail, as one side of politics boasts about its plan for growth and jobs.

The economy did grow at a perkier three per cent over 2015, as mentioned many times by the Turnbull government, although there are doubts that will have been maintained during the March quarter.

Even Treasury is predicting growth of only 2.5 per cent for this financial year and next.

Private capital expenditure due for release on Thursday is expected to have fallen by a further 3.5 per cent in the March quarter.

Economists will also dissect the report's business spending estimates after the weak results in the December quarter.

Construction work figures on Wednesday that also feed into the GDP numbers fell by 2.6 per cent in the March quarter, which ANZ economists calculate will subtract 0.4 percentage points from growth.

However, the data did show residential construction activity remaining firm, partially offsetting the continued steep decline in engineering work since the end of the mining investment boom.

Further quarterly reports on business profits and inventories, trade and government spending will be released early next week before the national accounts on Wednesday.


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Source: AAP



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