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Economy up 0.6 per cent in third quarter

Aggressive interest rate hikes have done little to slow growth in the September quarter, with the economy expanding by 0.6 per cent over the three months.

ABS CPI FIGURES STOCK Data shows rising interest rates are yet to slow growth in the Australian economy.
December 7, 2022
By Poppy Johnston
7 December 2022

The Australian economy expanded in the third quarter, with the full weight of rapid interest rate hikes yet to show up in growth figures.

September quarter national accounts showed the economy grew by 0.6 per cent, which followed a 0.9 per cent lift in the June quarter.

In the 12 months to September, the economy swelled by 5.9 per cent from a low base in the third quarter of 2021 caused by lockdowns.

“The September quarter was the fourth consecutive quarter of economic growth, following a contraction in the September quarter 2021, which was impacted by the COVID-19 Delta outbreak,” ABS head of national accounts Sean Crick said.

Experts were anticipating a 0.7 per cent lift over the quarter, with some economists expecting a slightly higher result.

The Australian Bureau of Statistics said household spending drove growth in the September quarter, lifting 1.1 per cent for the quarter and contributing 0.6 percentage points to GDP.

Treasurer Jim Chalmers said GDP was a backwards-looking indicator and the fall-out from successive interest rate rises was yet to weigh heavily on economic activity.

National account figures follow the eighth consecutive rate hike in a row on Tuesday.

The RBA has been lifting interest rates since May in a bid to slow down inflation.

NAB, ANZ and Westpac have already passed on the interest rate hike to mortgage holders in full.

For the average $750,000 loan, the 25 basis point lift will add $1251 to monthly repayments since May, according to RateCity data.

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