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Australia's economy grows at the fastest annual pace in two years | The Business | ABC NEWS

Автор: ABC News (Australia)

Загружено: 2025-09-03

Просмотров: 19104

Описание:

The Australian economy grew by 0.6 per cent in the March quarter and 1.8 per cent over the past year. Household spending, especially on hospitality, travel and end of year sales, was a key driver of growth as the savings rate fell. Most analysts think borrowers will need to wait a bit longer to see further interest rate cuts, especially given signs that household spending is picking up and savings are falling. The Reserve Bank is expected to leave interest rates on hold when it next meets on September 29 and 30.

KPMG Australia chief economist Brendan Rynne says there appeared to have been a turnaround, with household consumption picking up after a very weak period. But AMP deputy chief economic, Diana Mousina said some of the household spending was one offs, and she thinks Australians will pull back in the months ahead.

Public investment was the largest detractor from growth, as many large public infrastructure projects have either been completed or delayed. A 3.9 per cent slump in public investment was the biggest fall in nearly eight years, outside of the COVID period. The ABS attributed the decline to a drop-off in state government spending on health and transport infrastructure, as well as a fall in federal defence spending — although it added that defence spending remains "elevated" in annual terms. The business Michael Wright works for has been on the receiving end of this slowdown. InQuik makes prefabricated components for bridges and has seen delays in funding for some projects, although its factory in Newcastle remains busy for now.
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Australia's economy grows at the fastest annual pace in two years | The Business | ABC NEWS

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