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Pulse: Economic Update June 2013

The Australian economy expanded by 0.6% in Q1/2013, which is consistent with the pace of quarterly growth over the past year. The economy grew by 2.5% for the year ended Q1/2013, which is below trend growth and slightly below market economists’ expectations.
Australia is in the midst of a transition in economic drivers away from mining-driven business investments and exports and towards domestic economic drivers, particularly consumption and housing construction. A slowing in growth rates to slightly below-trend levels is nothing to worry about during this transition. However, what is concerning is the somewhat patchy evidence that the recovery in domestic conditions is underway. ​

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