Overview

• The 0.2% quarterly gain fell short of the 0.4% economists expected, leaving annual GDP growth at 1.3%.
• GDP per capita dropped 0.2% in the March quarter after a modest December uptick, marking a return to per person contraction.
• Household spending, which accounts for over half of economic output, grew just 0.4% in Q1 and slowed further to 0.1% in April.
• Public spending exerted its largest drag on growth since late 2017 as major infrastructure projects wrapped up.
• Markets now price in over an 80% probability of an RBA rate cut in July to support a subdued economy.