The state of Australia’s economy will be given a health check, with crucial growth figures set to be released.
GDP figures for the September are due to be announced on Wednesday, with economists tipping modest growth for the three-month period.
Growth is tipped to come in at 0.7 per cent, according to CommSec’s chief economist Ryan Felsman, up from the 0.6 per cent seen in the June quarter.
The annual growth rate for the period has also been predicted to increase from 1.8 per cent to 2.2 per cent.
Senior Associate Economist at NAB Jessie Cameron said the GDP data was expected to rise further than initial estimates.
“Partial indicators point to some loss of momentum in household consumption growth in quarter three, however, overall spending remains strong,” she said.
“The business and dwelling investment partials point to a larger-than-expected contribution to growth in the quarter.
“This strength is expected to more than offset a slight negative contribution from trade, while inventories are likely to be flat.”
A decline in large infrastructure projects is also expected to see a decline in government spending as a portion of GDP.
Thursday will also see the monthly household spending indicator be released for October.
Spending is expected to increase in the month by 0.6 per cent, coming off the back of a flat September for discretionary spending.
The figures follow a jump in monthly inflation from 3.6 per cent to 3.8 per cent for October, effectively dashing any hopes of a rate cut when the Reserve Bank meet in a week’s time at their final meeting for the year.
Inflation figures are above the Reserve Bank’s own forecasts for the end of 2025 and well over the central bank’s preferred band of between two and three per cent.
The data had prompted speculation the Reserve Bank could even hike interest rates.
US stocks climbed on Friday during a shortened session after Thanksgiving, driven by gains in retail and a recovery in tech stocks.
Expectations for a Federal Reserve rate cut in December strengthened throughout the week, helping underpin sentiment across equity markets.
The Dow Jones Industrial Average rose 0.61 per cent, to 47,716.42 points, the S&P 500 gained 0.54 per cent, to 6,849.09 points and the Nasdaq Composite added 0.65 per cent, to 23,365.69.
Locally, the ASX broke a month-long losing streak, notching its best weekly performance since May.
The S&P/ASX200 slipped 3.2 points on Friday, down 0.04 per cent, to 8,614.1, while the broader All Ordinaries edged 6.7 points higher, or 0.08 per cent, to 8,918.7.