Economists tip GDP growth slowdown

Australian Bureau of StatisticsImage by jandb.palmer via Flickr
Australia's economic growth most likely slowed in the September quarter after the June quarter recorded the fastest rate in three years, economists say.

The Australian Bureau of Statistics' (ABS) national accounts on Wednesday are expected to show gross domestic product (GDP) expanded by 0.5 per cent in the September quarter, according to an AAP survey of 12 economists.

The median market forecast for annual GDP expansion is 3.4 per cent. Economists are expecting economic growth to slow from the fast pace of the June quarter as business investment and construction figures decline. On the other hand, consumer spending kept growth going.

"It looks like a case of reasonable consumer spending," AMP Capital Investors chief economist Shane Oliver said.

"On the negative side, the construction figures released last week suggest dwelling investment probably fell 0.5 or 0.6 per cent.

"The business investment figures released last week were fairly soft as well."

Dr Oliver said consumer spending should be reasonably solid with retail sales up in real terms by 0.7 per cent

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