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6 clusters · 69 sources · 41 days · First seen 2 months ago · Last updated 28 days ago

Australian economic growth slows amid manufacturing decline

Overview

The Australian economic landscape continues to show a divergence between essential and discretionary spending, alongside signs of slowing growth. While essential retailers like Woolworths have remained resilient, discretionary sectors such as Domino’s Pizza Enterprises have struggled. Recent National Accounts from the Australian Bureau of Statistics show the economy expanded by 0.4% in the June quarter, exceeding the 0.3% consensus forecast. Annual growth slowed to 2.1%, surpassing the Reserve Bank of Australia’s projection of 1.9%. Treasurer Jim Chalmers characterized the figures as a “robust result” despite global uncertainties, noting contributions from housing investment and the private economy.

By September, indicators suggested a potential slowdown, with the S&P Global Flash Composite PMI falling to 50.8, driven by a sharp contraction in manufacturing. Inflation rose to 4% for the year ending in August, up from 3.5%, driven largely by a 5.7% increase in housing costs and a 5.6% rise in transport costs. Fuel prices saw a monthly surge of 14.8% due to higher global oil prices and the restoration of federal fuel excise relief, with officials noting that the Middle East conflict has contributed to these elevated costs. While the headline figure met expectations, the annual trimmed mean remained steady at 3.6%, and the monthly trimmed mean rose by only 0.2%, lower than the expected 0.3%.

Following the RBA’s decision to raise the cash rate to 4.6%, a 15-year high, Australian shares responded positively to the softer underlying inflation. However, Master Builders Australia warned that high interest rates and construction costs are dampening investment, noting a 6.1% drop in new home building approvals for August. Recent data confirms that total household spending remained flat in August, with a 0.3% decline when excluding the distortion of an 8.1% spike in fuel costs.

Entities

Reserve Bank of Australia · Australian Bureau of Statistics · Australia · Jim Chalmers · JB Hi-Fi

Claims

What the coverage asserts, and how many sources carry each claim.

[● 17 SOURCES] Annual headline inflation rose to 4.0% in August.
[● 15 SOURCES] Annual trimmed mean inflation remained unchanged at 3.6%.
[● 11 SOURCES] The budget improvement was driven by higher superannuation and investor income rather than commodity prices or wage earners.
[● 9 SOURCES] The underlying federal deficit for the 2025/26 financial year was $22.3 billion, which was $6 billion lower than the May budget forecast.
[● 9 SOURCES] The Reserve Bank of Australia raised the cash rate to 4.6%.
[● 8 SOURCES] US annual PCE inflation rose to 3.4% in August.
[● 7 SOURCES] Monthly CPI slowed to 0.4% in August.
[● 6 SOURCES] Housing costs increased by 5.7% annually.
[● 5 SOURCES] The war in the Middle East is a major driver of inflation and cost-of-living pressures due to rising oil prices.
[● 5 SOURCES] Government spending reached 26.9 per cent of GDP, the highest level since the 1986-87 financial year, excluding the pandemic.

Timeline

28 days ago

[BUSINESS] 44 sources
Australia and US report August inflation data
Australia's headline inflation rose to 4.0% in August, driven by housing and fuel, while US PCE inflation came in cooler than expected at 3.4%, impacting central bank policy expectations.
30 days ago

[BUSINESS] 20 sources
Australia budget deficit improves by $6 billion amid expected interest rate hike
Australia's budget deficit is $6 billion lower than forecast due to higher tax revenue from superannuation and investments, even as the RBA is expected to raise interest rates to a 15-year high.
about 2 months ago

[BUSINESS] 4 sources
Australia economy grows 0.4% in June quarter, boosting rate hike bets
Australia’s economy grew 0.4% in the June quarter, exceeding forecasts and fueling expectations that the Reserve Bank of Australia may raise interest rates to manage inflation.
about 2 months ago

[BUSINESS] 7 sources
Australia economy grows 0.4% in June quarter
Australia's economy grew by 0.4% in the June quarter, exceeding forecasts. However, experts debate whether rising business registrations signal true growth or merely restructuring and side hustles.
about 2 months ago

[BUSINESS] 11 sources
Australia economy grows 0.4% in June quarter despite cost pressures
Australia's economy grew by 0.4% in the June quarter, beating forecasts despite slowing annual growth and persistent cost-of-living pressures affecting household and discretionary spending.
2 months ago

[BUSINESS] 2 sources
Australian discretionary retail sector faces slump amid cost-of-living pressures
Australian discretionary retailers face a slump as cost-of-living pressures and inflation cause consumer spending to stall, impacting major brands like JB Hi-Fi and Temple & Webster.

Sources

24ur.com · 7news.com.au · abc17news.com · actionforex.com · americanindependent.com · arts-spectacles.com · astig.ph · autotalk.co.nz · canberradaily.com.au · cathnews.com · chinesepress.com · cn.dailyeconomic.com · communitynews.com.au · cryptobriefing.com · desitalkchicago.com · devdiscourse.com · digitalchew.com · epochtimes.com · europesays.com · eveningreport.nz · fight.org · finanzen.net · finnewsnetwork.com.au · fool.com.au · franchisebrokers.com.au · greenmountain.no · hillspet.com · ibtimes.com.au · interest.co.nz · internewscast.com · krdo.com · kvia.com · latestly.com · liberal.org.au · m.smh.com.au · masterbuilders.com.au · mojkraj.hr · myfoxatlanta.com · negocios.com · newsable.asianetnews.com · nypost.com · perthnow.com.au · proactiveinvestors.com.au · prommanow.com · propertyupdate.com.au · psnews.com.au · rogermontgomery.com · san.com

This summary has been updated 12 times: see revision history