SYDNEY (Reuters) -Australia’s financial system stayed caught within the sluggish lane within the June quarter as punishing borrowing prices and cussed inflation squeezed customers, leaving authorities spending as the principle driver of progress.
Knowledge from the Australian Bureau of Statistics on Wednesday confirmed actual gross home product (GDP) rose 0.2% within the second quarter, unchanged for 3 straight quarters. It was just below market forecasts of 0.3%.
Annual progress slowed to 1.0% from 1.2% the earlier quarter, lows final seen in the course of the depths of the pandemic.
For the quarter, family spending, which accounts for half of GDP, really fell 0.2% to tug on progress, as individuals reduce on journeys overseas.
The financial savings fee stayed subdued at 0.6%.
The downturn has been largely engineered by the Reserve Financial institution of Australia (RBA) which hiked rates of interest to a 12-year excessive of 4.35% in an effort to curb demand and value pressures.
Measures of costs within the GDP report have been additionally on the excessive aspect, with inflation in home demand working at 4.2% for the 12 months.
All this inflation has been a boon for nominal GDP, which expanded 4.4% within the 12 months to June. Stripping out the results of inflation, nonetheless, per capita GDP fell 0.4% within the quarter, the sixth straight quarter of declines.
Productiveness – the measure of output per hour labored – dropped 0.8% within the quarter.
