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Australia's GDP Growth Forecast to be 0.5% in Q2, ANZ Research Says

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Australia's second-quarter gross domestic product (GDP) growth is forecast to be 0.5% quarter over quarter and 2% year over year, bringing the yearly increase in GDP back to a rate broadly consistent with the Reserve Bank of Australia's estimate of potential growth, ANZ Research said in a note on Tuesday.

The bank's initial estimate for the GDP was 0.4% quarter over quarter growth and 1.9% year over year growth.

GDP (expenditure) is likely to rise 0.1% quarterly and 1.7% on an annual basis, ANZ said. Household consumption is expected to rise 0.5% quarterly after a similar increase in the first quarter.

Public demand will rise 0.2% quarter-over-quarter, ANZ said, adding that this gives a weak picture for domestic demand in the quarter, which is expected to be up just 0.1% on a quarterly basis.

GDP (production) is expected to rise 0.5% on a quarterly basis and 2.2% on an annual basis. Real GDP (income) is forecast to rise 0.8% on a quarterly basis and 2.2% on a yearly basis. Productivity is likely to be little changed in the second quarter, ANZ said.

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International

BRC: UK Shop Price Inflation Rises to Over Two-year High in August

The UK's shop price inflation climbed 1.5% year over year in August, from 0.9% a month ago, a survey by the British Retail Consortium showed Tuesday.The latest reading was above the consensus estimate of 0.9% and marks an over two-year high.BRC Chief Executive Helen Dickinson attributed the rise in inflation to higher energy, input, and commodity costs, noting "challenging" months ahead for households.

FTSE 100
International

New Zealand Business Credit Demand in August Falls, Centrix Says

Business credit demand in New Zealand is down 0.8% year over year, and defaults are down 12%, but company closures and liquidations remain elevated, Centrix said in a report on Tuesday.A softer housing market, rising unemployment, and higher borrowing costs carry the potential to place additional pressure on some households in the months ahead, the report added.Meanwhile, consumer arrears increased to nearly 11%, with 424,000 people behind on repayments, but remain over 13% lower than a year ago, Centrix said. The number of consumers 90 or more days past due fell to 82,000.Consumer credit demand declined 7.3% year on year, while new mortgage lending fell almost 12% during the July quarter, per the report. Mortgage arrears also increased slightly to 1.2%, with around 19,900 home loans past due, although this was 12% below prior-year figures.Overall new household lending declined roughly 11% year on year during the July quarter, driven by weaker residential mortgage activity. Approved new mortgage lending was down 12% compared with the same period last year.

^NZ50
International

China's Factory Activity Growth Accelerates, RatingDog Survey Shows

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Shanghai Composite^SZSE