New survey data suggest that business conditions in Australia continued to deteriorate in May. Moreover, with firms also reporting a renewed easing in cost and price pressures, risks are tilting further towards the RBA's next rate cut coming in July, rather than in August as we expect. Elsewhere, partial activity indicators point to a solid uptick in New Zealand's Q1 GDP. However, with consumer spending on track to decline this quarter, the recovery is on shakier ground than it seems.
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