Australian GDP slows in third quarter

The Australian dollar slid to a four-year low on Wednesday after economic growth unexpectedly slowed and crude oil advanced. Gross domestic product expanded just 0.3 per cent in the September quarter.

The Aussie fell to US83.92¢, its lowest level since July 2010.

According to the Australian Bureau of Statistics, GDP in the third quarter expanded 0.3 per cent in seasonally-adjusted terms, translating to year-on-year growth of 2.7 per cent. This was well below economists’ forecasts of about 0.7 per cent for the month and 3.1 per cent for the year. Today’s data compares with an average 2.9 per cent over the past decade and a 15-year average of 3.1 per cent.

Weak business inventories and public and private sector investment dragged on growth but export volumes helped sustain growth. It was evident that non-resources industries had been slow to pick up the slack left by the end of the country’s mining infrastructure boom.

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