What caused the economy to contract

(Australian Associated Press)


Australia’s gross domestic product fell 0.5 per cent in the September quarter, cutting annual economic growth to just 1.8 per cent. Here’s why:

* Consumer spending grew by just 0.4 per cent in the quarter, the weakest growth since 2013.

* Housing investment fell 1.4 per cent, a correction from strong growth in previous quarters.

* Public spending dropped 2.4 per cent after a big rise the previous quarter.

* Business investment grew by 0.1 per cent, with non-mining investment barely making up for falling mining investment.

* Net exports fell, as imports outweighed exports.

(Source: AMP Capital and CommSec)


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