Daily Commentary BY THE CURVE TEAM –

Daily Insights – GDP Overshoots

2nd of September, 2021

GDP Overshoots

  • Q2 growth was 0.7%, which is 9.6% higher than last year.
  • Private consumption was up 1.1%, with the savings rate falling to 9.7% from 11.6%.
  • Public spending remains high, up 1.9% for the quarter.
  • Business investment also remains strong, up 2.3%.

House Prices Keep Rising

  • They rose 1.5% in August.
  • It leaves them 17.5% higher than last year.

Mutual Sector

  • Over the next two years a reduction in the number of mutual ADIs is expected to decline according to S&P.
  • Polling showed 39% expect there to be about 50 in 2 years and another 39% expect about 40. There are currently 60.
  • It follows recent mergers.

Josh Stewart

Associate - Money Markets