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Figures to show economy needs a lift

AAP logoAAP 28/08/2016 Colin Brinsden, AAP Economics Correspondent

The Turnbull government talks a lot about getting the economy moving, urging the new parliament to get on board with its policy agenda.

Federal MPs and senators will converge on Canberra this week for the first sitting since the July 2 election.

After Tuesday's largely ceremonial business, Wednesday and Thursday will see a slew of measures introduced into parliament from the budget, including the $50 billion plan to cut the company tax rate to 25 per cent over the next decade.

"We have a moral responsibility to recover the budget, to help grow the economy," manager of government business Christopher Pyne said.

As of now, economists at Commonwealth Bank and National Australia Bank are forecasting a slim 0.3 per cent growth in the June quarter when the national accounts are released on September 7, a marked slowing from the 1.1 growth three months earlier.

It would be enough to keep the annual rate at 3.1 per cent.

However, a lot could change with financial markets this week looking out for Thursday's capital expenditure numbers for the June quarter.

CBA is forecasting a five per cent drop in business investment in the quarter, for a chunky 16 per cent tumble over the year, as the economy continues to suffer from the end of the mining investment boom.

Last week, construction figures for the same period showed engineering slumped nine per cent to be a hefty 25 per cent down on the year, also as a result of the end of the boom.

Recent other figures showed retail spending was subdued in the quarter and wage growth remained at its slowest in almost two decades, while exports - which provided the main bulk of the 1.1 per cent growth in the March quarter - will likely make a more modest contribution this time around.

Still, there is a series of other quarterly numbers due early next week - company profits, business inventories and government spending - before the national accounts report is released.

This week also sees a spread of monthly figures - building approvals, retail trade, manufacturing and credit demand, as well as the weekly consumer confidence report.

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