Australia's economy expanded less than expected in the three months through September amid sluggish consumption and as commercial construction declined. The currency slumped almost half a U.S. cent.
Gross domestic product rose 0.3 percent from the second quarter versus economists' median estimate of 0.6 percent; economy grew 2.8 percent from a year earlier versus 3.3 percent forecast, the statistics bureau said in Sydney Wednesday.
The household savings ratio fell to 2.4 percent from a revised 2.8 percent; household spending rose 0.3 percent from the previous quarter.
Government spending on roads, bridges and railways has supported the economy; authorities are ramping up infrastructure projects to catch up with an expanding population; high immigration has been another key economic factor.
The downside is the projects coincide with the late stages of a housing construction boom as public and private sectors compete for labor -- that’s forcing some residential builders to scrap projects due to excessive costs in a weakening property market