SYDNEY: Australia's economy grew 0.5 per cent in the three months to September and 3.1 per cent from a year earlier, data showed Wednesday, with China's slowdown dampening growth.
The Australian Bureau of Statistics said gross domestic product (GDP) grew a seasonally adjusted 0.5 per cent in the quarter, in line with expectations, driven by the mining and manufacturing sectors.
It compares with growth of 0.6 per cent in the three months to June and year-on-year growth of 3.7 per cent last quarter, lending weight to the central bank's decision to lower interest rates on Tuesday to stimulate the economy.
Mining contributed 0.4 per cent to quarterly GDP growth, despite a plunge in commodity prices due to a cooling in China's economy that saw a 4.0 per cent drop in Australia's terms of trade -- the value of its exports against its imports.
Private business investment accounted for 0.5 per cent of GDP growth and consumer spending added 0.2 per cent. Falling government spending detracted 0.5 per cent.
The Reserve Bank of Australia slashed the official interest rate by 25 basis points to 3.0 per cent this week -- their equal lowest since RBA independence in the early 1990s.
- AFP/ck
Australian economy grows 0.5% in Sep quarter
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Australian economy grows 0.5% in Sep quarter
