Australian economy grows 2.8 per cent

The Australian economy has rebounded to near full strength with the latest Australian Bureau of Statistics figures showing it is growing 2.8 per cent, up from 1.8 per cent in the June quarter.

This puts it in line with the RBA’s forecasts of Australia returning to 3 per cent growth.

Gross domestic product rose 0.6 per cent in the September quarter from the previous three months, which had it rise by a revised 0.9 per cent.

Economists had tipped GDP growth of 0.7 per cent and 3 per cent respectively.

This is despite that consumers were not spending that much.

Household consumption grew by only 1 per cent, the weakest since 2008.

But the big contributor was new engineering construction.

It grew 6.3 per cent in the September quarter 2017, contributing 0.2 percentage points to GDP.

Underlying business investment was up 2 per cent. It has risen for four quarters in a row.

Another driver was state and local general government investment.

It was up 16.6 per cent with New South Wales and Victoria being the main contributors to growth through the year, on the back of continuing public infrastructure projects.

 

 



An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.