FLAU - Australia Q2 GDP reports modest growth for seventh straight month beats estimates
2023-09-06 01:04:35 ET
-
The Australian economy expanded 0.4% q/q in Q2 of 2023, the same pace as an upwardly revised figure in Q1 but above market forecasts of a 0.3% growth, marking the seventh straight period of economic growth, amid positive contribution from net trade as exports rose more than imports.
-
Annual growth was at 2.1%, above expectations for 1.8%, slowing from a 2.4% gain in Q1.
-
Household consumption, which used to be the engine of growth, remained subdued with just a 0.1% gain and added 0.1 percentage points to growth due to spending on essential goods and services.
Consumers continued to tighten their belts as the savings ratio dropped further to 3.2%, the lowest level since 2008, suggesting the rate hikes are working to slow demand.
-
The Reserve Bank of Australia left interest rates unchanged for a third straight month on Tuesday as inflation cooled and growth slowed. Consumer inflation slowed to a lower-than-forecast 4.9% in July and away from last year's peak of 8.4%.
For further details see:
Australia Q2 GDP reports modest growth for seventh straight month, beats estimates