Fed: Economy takes off again in September quarter

AAP General News (Australia)
12-15-1999
Fed: Economy takes off again in September quarter

CANBERRA, Dec 15 AAP - Australia's economy bounced back strongly in the September quarter,
soaring 1.6 per cent seasonally adjusted, the strongest quarterly growth in over two years.

The Australian Bureau of Statistics (ABS) said that lifted economic growth for the
year to September to 4.5 per cent.

The strong recovery had been expected after the flat result in the previous June quarter
when the economy grew just 0.1 per cent, revised down from the original estimate of 0.2
per cent.

Once again the growth in the economy was driven by domestic demand, with household
consumption growing 1.3 per cent seasonally adjusted in the quarter.

Furnishings, household equipment, recreation, culture and insurance all recorded strong
growth, while the pre-GST buyers strike saw motor vehicle purchases slump.

Exports rose 4.2 per cent seasonally adjusted, while imports rose 5.8 per cent, meaning
trade was a negative factor in the economy, dragging back the already high growth by 0.4
per cent.

Property and business services was the strongest sector of the economy, followed by retail trade.

Agriculture recorded a slight improvement, but not enough to have an impact, while
the construction and government sectors were the only two to go backwards in the quarter.

Today's figures were slightly higher than financial markets expected, and will do little
to change the view that another interest rate rise of 0.25 per cent is now all but certain
early in the new year.

AAP ss/mfh/it/br

KEYWORD: ECONOMY

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