Overview
- Westpac lifted its December‑quarter GDP forecast to 1.1% after firmer readings on public demand and inventories.
- Commonwealth Bank raised its estimate to 1.0%, a pace it says is well above potential growth.
- Defence investment jumped 7.1% and federal public corporations rose 6.1%, driving a 0.9% rise in public investment despite state and local declines.
- If ABS national accounts due Wednesday confirm the data, Q4 would be the fastest quarterly growth since December 2016 outside the pandemic.
- RBA governor Michele Bullock says demand is outpacing supply and that sustained growth above about 2% would risk higher inflation, as Westpac’s assessment contrasts with Treasurer Jim Chalmers’ claim government spending is not fuelling inflation.