Australia’s economy slowed last quarter as the government and consumers tightened spending, validating the central bank’s decision to cut interest rates yesterday.
Third-quarter gross domestic product advanced 0.5 percent from the previous three months, when it expanded 0.6 percent, a Bureau of Statistics report released in Sydney today showed. The result compared with the median of 25 estimates in a Bloomberg News survey for a 0.6 percent gain.
The report covers a period when companies including BHP Billiton Ltd. scaled back mining projects in response to lower commodity prices. Reserve Bank of Australia Governor Glenn Stevens lowered rates four times this year to help support consumption and the nation’s housing market as an elevated currency extended a slump in manufacturing and services, and the government sought spending cuts to eliminate a budget deficit.
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