Australian Q3 GDP +0.2% q/q (vs. expected +0.4%)

<p>Data for economic growth in Australia during the July, August &amp; September months of 2023.</p><p>A q/q miss and y/y beat. </p><ul><li>The terms of trade fell 2.6%
</li><li>Household saving to income ratio decreased to 1.1% from 2.8%; 1.1% is the lowest proportion of saving since December quarter 2007</li><li>Growth this quarter was driven by government expenditure and capital investment (Government final consumption expenditure rose 1.1 per cent this quarter after a 0.6 per cent increase in the June quarter … Investment by public corporations rose 8.9%, increased investment in transport, communication and utilities projects … private engineering construction also rose due to increased mining industry investment.)</li></ul><p>Disappointing q/q headline, the +0.2% is the slowest in 2 years, economic growth propped up by government spending, although mining investment helped. The much slower savings rate is being attributed to the impact of rising living costs. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.