FEAR & GREED | Business News Q+A: Bumper week for the economy
Aug 31, 2025
Stephen Koukoulas, an insightful economist known as The Kouk, joins to dissect the upcoming GDP figures and their significance. He explains how household spending and business investment shape economic growth, while also addressing the current housing market trends amid supply shortages. Koukoulas clarifies how government policies are bolstering opportunities for first-time buyers. Additionally, he allays concerns over rising inflation, emphasizing its manageable nature and discussing its potential impact on interest rates.
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GDP Numbers Are Largely Preceded By Component Data
- GDP for the June quarter likely shows a modest pickup to around 0.5% quarterly and ~1.6–1.7% annual growth.
- Forecasters can now better predict GDP because many component releases arrive before the headline number.
Late Data And Revisions Can Surprise GDP Forecasts
- The ABS sometimes revises prior quarters and some components (farm inventories, services) arrive only with the full GDP release.
- These late elements can still create surprises versus economists' forecasts.
Housing Market Showing Consistent Monthly Gains
- House prices have recorded several months of solid monthly gains around 0.5–0.7%.
- Auction clearance rates and supply-demand imbalance indicate further upward pressure on prices.