Australia's economy grew 0.2 per cent in the three months to September, down 0.4 per cent in June and lower than the consensus forecasts of 0.5 per cent. Here's what happened in the economy over those three months.
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* Households are struggling following a series of interest rate hikes, pushing mortgage repayments higher, moderating but still-high inflation and rapid growth in tax payments.
* These pressures are eating into the gains of strong wage growth, with compensation of employees up 2.6 per cent - its largest quarterly rise since September 2022. This was driven by the tight labour market, increases to the super guarantee rate and the workplace umpire's decision to lift minimum and award wages.
* With the household sector under pressure, the volume of consumption was flat over the quarter. Energy bill relief and other government subsidies also helped weigh down the overall result.
* In a further sign of financial pressure, the household saving to income ratio fell for the eighth straight quarter to 1.1 per cent, its lowest level since December quarter 2007. The expiry of the low and middle income tax offset meant households had a higher income tax bill this quarter.
* Business and public investment were key drivers of growth in the quarter, with capital investment lifting 1.1 per cent and contributing 0.2 percentage points to GDP.
* Inventories added 0.4 percentage points to growth, with big falls in public and farm inventories countered by a major rise in mining stocks.
* Exports dropped 0.7 per cent, with goods exports falling and then partially offset by services exports.
Australian Associated Press
