National

Australia's economy expands 0.2pct in September quarter

By AAP Newswire

Dec 6, 2023

General scene of the Melbourne Markets in Epping — The economy grew by 0.2 per cent in the September quarter. -AAP Image

Australia's quarterly growth has slowed to 0.2 per cent in September from 0.4 per cent in the three months to June.

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A stronger 0.5 per cent quarterly expansion was pencilled in by economists ahead of the Australian Bureau of Statistics' quarterly national accounts release.

On an annual basis, gross domestic product as logged by the bureau lifted 2.1 per cent.

Gross domestic product is the primary way that activity in the economy is measured.

ABS head of national accounts Katherine Keenan said growth had slowed over 2023.

"Government spending and capital investment were the main drivers of GDP growth this quarter," she said.

Household spending was flat in the September quarter.

The bureau noted that growth in both household consumption and GDP over 2023 had been slowing due to sustained cost of living pressures and higher interest rates.

The quarterly economic health check follows the Reserve Bank's decision to keep interest rates on hold at 4.35 per cent at the last board meeting until February.

The central bank has been lifting interest rates to bring down still-high inflation, and aims to keep curbing inflation while keeping the economy growing and preserving gains in the labour market.

By AAP Newswire

Australian Associated Press