Australia: GDP slows down further in Q3
December 5, 2012
In the third quarter, GDP expanded 3.1% over the same period the previous year. The reading came in below the revised 3.8% expansion recorded in the second quarter (previously reported: +3.7% year-on-year) and was broadly in line with Consensus Forecast expectations of a 3.0% rise. The slowdown was driven by a moderation in domestic demand, while the net contribution from the external sector to economic growth improved compared to the previous quarter.
Domestic demand expanded 3.7% annually, down from the 6.0% rise seen in the second quarter. Private consumption slowed from a 3.6% expansion in Q2 to a 3.3% rise in Q3, while fixed investment expanded 4.5% (Q2: +11.8% yoy). Moreover, a negative shift in inventories further contributed to the deceleration. On the external side of the economy, exports of goods and services rose 4.7%, down from the 7.2% expansion seen in Q2, while imports increased 3.5%, marking a moderation compared to the 9.0% expansion observed in the previous quarter.
As a result, the external sector's net contribution to overall growth swung from minus 0.3 percentage points in the second quarter to plus 0.7 percentage points in the third. Quarterly figures corroborate the moderation seen in annual figures, as the economy expanded a seasonally adjusted 0.5% over the previous quarter, inching down from the 0.6% increase recorded in Q2.
Author: Armando Ciccarelli, Head of Data Solutions