Australian Economy Slows to 0.3% in Q3

• Australian Economy Slows to 0.3% in Q3

Australian gross domestic product slowed in the third quarter following weak consumer spending.

The economy grew by 0.3 percent, according to the Australian Bureau of Statistics report released on Wednesday. The number was below the 0.9 percent recorded in the second quarter and the 0.6 percent expected by analysts.

“The household sector drove domestic growth with increased consumption supported by moderate rises in household income,” said Bruce Hockman, Chief Economist at the ABS.

On a quarterly basis, household consumption expanded by 0.3 percent, contributing 0.2 percent to the real GDP.

“Household consumption rose 0.3%, driven by non-discretionary spending on food and housing. Spending on discretionary items slowed during the quarter.”

In an effort to boost household consumption, the ABS said government consumption and investment increased strongly during the quarter.

“Public spending was funded through increased revenue,” it said.

“General government final consumption expenditure increased 0.5%, underpinned by continued expenditure in health, aged care and disability services.”

“Public investment remained at high levels with continued work on a number of large infrastructure projects around the nation.”