Australia's GDP Q1 lives up to upgraded expectations

Australia's Gross Domestic Product (QoQ) for Q1 came at 1.1% vs 0.8% exp and 0.6% last, while the yearly reading registered 3.1% vs 2.8% exp and 3% last. The data was expected to come strong after yesterday's upbeat exports figures seen in Australia.

Q1 KEY POINTS - Australian Bureau of Statistics

• The March quarter 2016 National accounts show the Australian economy growing by 1.1% in seasonally adjusted chain volume terms.

• The major driver of economic growth this quarter came from Exports which contributed 1.0 percentage point and Household final consumption expenditure contributing 0.4 percentage points.

• The increase in Exports is reflected in the growth observed in Mining production (6.2%). Growth was also observed in the service industries of Financial and insurance services (1.8%), Accommodation and food services (1.5%), and Arts and recreation services (0.9%).

• The largest detractor from growth was Private gross fixed capital formation which fell 2.2%, this was driven by falls in New engineering construction (-6.4%) and New buildings (-6.9%).

• The Terms of trade fell by 1.9%, reflecting a fall in the price of exports relative to the price of imports.