GDP falls short of economist expectations despite economy growing at its fastest pace

ABC NEWS (Australia)

The Reserve Bank had another piece of the puzzle to consider ahead of its interest rate meeting next week. New GDP numbers fell short of analysts' expectations. But show the economy has been growing at its fastest annual pace in two years.

Transcript

00:00Business is heating up at this air conditioning company.

00:06It's just built this new $28 million facility.

00:09Every year we make a little more.

00:122025 is shaping up to be another record year for this factory.

00:16It's reflective of the broader economy.

00:19The really encouraging part of these numbers is to see that the growth in the private sector is gathering pace.

00:25The Australian economy grew 0.4% in the September quarter and 2.1% over the year,

00:32driven by business investment predominantly on data centres

00:36and household spending on essentials like rent, power and insurance.

00:40Australians decided to put away a bit more of what they earned, pushing up the savings ratio.

00:46The big drag on growth came from mining and gas companies selling off stockpiles while they performed maintenance.

00:53Economic growth in the quarter was weaker than economists were expecting.

00:57We saw a contraction in spending in those areas that are not essential spending.

01:05Households can't rely on any relief from the Reserve Bank when it meets next week.

01:09Most economists expect rates to remain on hold, with the possibility of rate hikes next year.

01:15Speaking before figures were released, the RBA Governor defended the central bank's decisions.

01:21We've got an unemployment rate of 4.3% and we've got an inflation rate at 3.2% at the moment, admittedly,

01:31but forecast to come back down into the band.

01:34And so I think the strategy still is alive.

01:37A strategy that's also seeing the economy grow.

01:40ождения grow.

01:413.5%

01:47NO.

01:50SINGAL

01:52related

Category

Transcript

Be the first to comment

Recommended