Australia's economy is finally slowing - but by how much?

Australia's economy is finally slowing - but by how much?

Australia's economy is finally slowing - but by how much?

Australia has dipped into a per capita recession with new data yesterday showing that while the economy expanded over the December quarter, it was not enough to outpace the rate of population growth.

"The economy lost considerable momentum in 2018, slowing from around a 4.0 per cent annualised pace in the first half of the year to around a 1.0 per cent pace in the second", Westpac Bank Chief Economist Bill Evans said.

Australian retail turnover rose 0.1 per cent in January 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.

GDP per capita contracted by 0.2 percent for the fourth quarter, after shrinking 0.1 percent in the previous three months.

The figures showed annual growth last year at 2.3 per cent, but with growth slowing considerably in the second half of the year as consumer spending weakened and storm clouds gathered in the long-booming housing market. Evidence of the wealth effect from the fall in home prices is playing out with the savings ratio rising to 2.5% from 2.3% in the prior quarter. "A pick-up in growth in household income is nonetheless expected to support household spending over the next year".

Battlefield 5 Battle Royale Mode Tutorial Leaks Online in New Footage
Fans have been waiting in anticipation for some juicy details and this is our first decent look at the new mode. We reported helicopters and the various modes you can undertake during your time with Firestorm.

The uncertainties surrounding household consumption are also likely to worsen given the sluggish wage growth and continued decline in property prices.

Underlying business investment (which takes into account asset transfers between the private and public sector) rose by 0.7% and contributed 0.1 percentage points to growth.

Inflation pressures and wages are still low.

The central bank on Tuesday kept interest rates at a record low of 1.50 percent as it waits to see if a strong labour market - with the jobless rate at 5.0 percent - feeds into higher wages.

With the GDP numbers providing a backward looking confirmation of the weak growth in the economy at the end of 2018, it is important to look at more recent data releases but these have been mixed.

Recommended News

  • Nirav Modi Seen Walking On London Street, Political Parties React: Updates

    Nirav Modi Seen Walking On London Street, Political Parties React: Updates

    This is the first visual of the embattled diamond tycoon who fled India in January 2018, just before the PNB scam came to light. Nirav Modi and his uncle Mehul Choksi are the prime accused in the Punjab National Bank scam.
    Measles: Greater Manchester reports recent spike in confirmed cases

    Measles: Greater Manchester reports recent spike in confirmed cases

    The measles, mumps and rubella vaccine is 93 percent or more effective at preventing measles, according to the CDC . Anyone who was exposed was at risk of getting the disease if they have not been vaccinated or have not had measles.
    Apple's Augmented Reality Headset Could Go Into Production This Year

    Apple's Augmented Reality Headset Could Go Into Production This Year

    It's hard to imagine the company releasing a headset like those made by HTC Vive, Oculus, and their counterparts. However, we do trust Apple to sort out these issues before launching the headsets.
  • NASA captures images of supersonic shockwaves

    NASA captures images of supersonic shockwaves

    This week, NASA released the first-ever images of shockwaves from two supersonic jets interacting, and they are simply stunning. NASA hopes that by reducing sonic booms, it might be able to get around the restrictions on supersonic flight over land.
    Former Ravens S Eric Weddle signing with Rams

    Former Ravens S Eric Weddle signing with Rams

    Weddle reportedly considered retirement and has previously said the the Ravens would be the last team he played for . He registered 68 combined tackles, a sack, and three passes defensed through 16 starts with the Ravens in 2018.
    Women's national soccer team players sue for equitable pay

    Women's national soccer team players sue for equitable pay

    While the USSF and USWNT reached an agreement in April 2017 on a five-year collective bargaining agreement, the complaint was still outstanding.
  • Rasheed Wallace Named Head Coach Of NC High School Basketball Team

    Rasheed Wallace Named Head Coach Of NC High School Basketball Team

    He said at the news conference the timing was right and he knew the area as well as the school since his nephew attended recently. Wallace will lead the Jordan High School program, starting on Friday, when he was introduced as the team's coach.
    Oklahoma City Thunder edge Portland Trail Blazers in overtime thriller

    Oklahoma City Thunder edge Portland Trail Blazers in overtime thriller

    After crossing halfcourt, Westbrook retaliated by shoving Nurkic to the floor. "But I would boo me too if I was the other team". With the win , the Thunder swept the season series against the Trail Blazers for the first time since the 2012-13 season.
    F1 moves closer to approving point for fastest lap

    F1 moves closer to approving point for fastest lap

    This avoids situations where a backmarker pits at the end of the race for new tyres with the sole goal of setting the fastest lap. However, if fastest-lap points had been awarded that year then both teams would likely have done more to have won them.
  • SpaceX's Crew Dragon module has splashed down in the Atlantic Ocean

    SpaceX's Crew Dragon module has splashed down in the Atlantic Ocean

    Despite the distractions, Friday's landing appeared to be another triumph for SpaceX, and validation of years of work. Take action today and your gift will go twice as far to increase NASA budgets and advance space priorities.
    No-deal Brexit could spark recession: OECD

    No-deal Brexit could spark recession: OECD

    In more unsettling Brexit news, it has been reported that in a No-deal Brexit scenario the United Kingdom economy would tank. On Wednesday, chief European Union negotiator Michel Barnier said "no solution" had been found to break the deadlock.
    ROH Owner Purchases YES Network

    ROH Owner Purchases YES Network

    The Yankees have reportedly reached an agreement to buy back the YES Network from Disney for $3.4 billion. YES Network perennially ranks as one of the most-watched regional sports network in the country.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.