Australia economy slows in Q3 as inflation saps spending power

SYDNEY (Reuters) – Australia’s economy slowed a little in the September quarter as high prices and rising interest rates sapped consumer spending power, a sign aggressive policy tightening is working to cool demand.

Data from the Australian Bureau of Statistics on Wednesday showed real gross domestic product (GDP) rose 0.6% in the third quarter, compared with 0.9% the previous quarter and just under forecasts of 0.7%.

Annual growth still sped to a heady 5.9% – faster than China – though largely thanks to a one-off boom late last year as the economy re-opened from pandemic lockdowns.

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