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