Australia has reported weaker-than-expected growth for the July-to-September quarter partly due to slower domestic demand. The nation’s gross domestic product (GDP) expanded 0.6% compared to the previous quarter and 2.3% year-on-year.
Most analysts had forecast a quarterly growth of about 0.7% and an annual expansion of close to 2.6%. Australia’s economy has also been hurt by a global slowdown which has seen its mining boom wane recently.
“It looks like household consumption has probably been the main disappointment in the actual quarter,” said Su-Lin Ong, an economist with RBC Capital Markets. “It very much confirms the idea of an economy that is running around sub-trend pace and has a number of challenges,” she added.
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