Australia’s economic growth in the 3 months to September
came in at 0.6%, slightly below the expected 0.7% and below the June quarter
growth figure.
As a result annual growth slowed to 2.3% which is below the
trend rate of 3.25%. Exports contributed 0.7% to growth, with Government
investment adding 1.3% while private business investment detracted 1.4% from
growth and business inventories a further 0.5% subtraction.
The Governor of the Reserve Bank said that the sub-trend
growth was expected to continue and that the A$ remained “uncomfortably high”.
October retail sales in Australia rose 0.5% in October, slightly
above expectations, and 3.6% above October 2012.
In the US house prices appear to be on the rise and economic
activity is improving although largely on the back of increased inventories in
preparation for the holiday period. The US economy is showing growth at a
speedy 3.6% with inventory investment contributing 1.7%.
