Australia’s economy surprised in the third quarter, growing faster than expected on the back of better exports and consumer spending. Meg Teckman reports.
EDITORS PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIALS Growth in the economy down under picked up the pace in the third quarter. Australian GDP grew 0.9 percent in Q3 compared to the previous quarter, slightly faster than analysts' forecasts. And on an annual basis, Q3 GDP rose 2.5 percent, back on the upswing after the second quarter's 1.9 percent reading. A surge in exports, particularly commodities, helped buoy the figures. Mining activity was brisk during the quarter but investment in the sector has now seen over a year of declines, taking a chunk of GDP growth with it. However consumer spending helped to offset the investment drag as confidence returns and disposable income creeps up. The country's central bank was positive about the data release and stood by the decision to leave rates at the record-low of two percent at Tuesday's (December 1) policy meeting. ENDS