Australia’s economic growth slowed in the final three months of 2018 as consumption remained subdued and residential construction fell, with government spending being the key support. The currency dropped.
Gross domestic product rose 0.2 percent from the third quarter versus the median economists’ forecast of 0.3 percent; it gained 2.3 percent from a year earlier compared with an estimated 2.6 percent, the statistics bureau said in Sydney Wednesday.
Household spending rose 0.4 percent in the fourth quarter, while the savings ratio was 2.5 percent.
Policy makers are looking closely at household spending, which accounts for almost 60 percent of GDP, amid signs that consumers are holding back in response to falling property prices and persistently weak wages.
The Australian dollar fell, buying 70.56 U.S. cents at 11:34 a.m. in Sydney compared with 70.88 before the report.
Source : Bloomberg