Lonsec Market Commentary – August 2019
Australia’s GDP growth for the June quarter recorded only 1.4% year-on-year, the worst result since the GFC.
While in line with expectations, the result highlights the challenging environment on the spending side of the economy, with state final demand (a broad measure of spending) recording zero quarterly growth in NSW.
The renewed bout of risk aversion through August and September reflected the escalation in the US-China trade and technology war, along with evidence of further slowing in the global economy. An inversion of the yield curve rattled markets, giving rise to the debate about the timing of the next recession and whether the US Fed was doing enough to fight the slowdown.
(Lonsec August 2019, Issue date: 17-09-2019)