Australian Q3 GDP +0.2% q/q (vs. expected +0.4%)

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Australian Q3 GDP +0.2% q/q (vs. expected +0.4%)

Data for economic growth in Australia during the July, August & September months of 2023.

A q/q miss and y/y beat.

• The terms of trade fell 2.6%
  
• Household saving to income ratio decreased to 1.1% from 2.8%; 1.1% is the lowest proportion of saving since December quarter 2007
• Growth this quarter was driven by government expenditure and capital investment (Government final consumption expenditure rose 1.1 per cent this quarter after a 0.6 per cent increase in the June quarter ... Investment by public corporations rose 8.9%, increased investment in transport, communication and utilities projects ... private engineering construction also rose due to increased mining industry investment.)

Disappointing q/q headline, the +0.2% is the slowest in 2 years, economic growth propped up by government spending, although mining investment helped. The much slower savings rate is being attributed to the impact of rising living costs.

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Australian Q3 GDP +0.2% q/q (vs. expected +0.4%)

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