Thursday, January 17, 2019
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Australia’s economy is not much grower than expected in the three months since September. Consumption and commercial construction have been declined. The currency slumped almost half a U.S. cent.

 

  • GDP rose 0.3 percent from the second quarter versus economists’ median estimate of 0.6 percent; economy grew 2.8 percent from a year earlier versus 3.3 percent forecast, the statistics bureau said in Sydney Wednesday.

 

Key Insights

  • The household savings ratio fell to 2.4 percent from a revised 2.8 percent; household spending rose 0.3 percent from the previous quarter

 

  • Government spending on roads, bridges and railways has supported the economy; authorities are ramping up infrastructure projects to catch up with an expanding population; high immigration has been another key economic factor

 

  • The downside is the projects coincide with the late stages of a housing construction boom as public and private sectors compete for labor — that’s forcing some residential builders to scrap projects due to excessive costs in a weakening property market

 

Market’s Reaction

  • The Australian dollar bought 73.04 U.S. cents at 11:38 a.m. in Sydney compared with 73.50 before the report.

 

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