Australia’s Economy Grows a solid 0.8%

Australia’s economy grew a solid 0.8 percent last quarter as a surge in resource exports and a pick up in consumer spending helped offset a sharp pullback in business investment, an upbeat report that sent the local dollar bounding higher.

Gross domestic product (GDP) advanced at a 2.8 percent pace compared to the fourth quarter of 2012, up from 2.3 previously, and closer to the usual pace expected for a country that has not suffered a recession in 22 years.

The Australian dollar jumped a third of a U.S. cent as the data came in above of forecasts. Interbank futures were steady as the market had already widened the odds of a further easing in interest rates given more timely data showed past cuts are feeding through to housing and consumption.


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