Consumer spending cuts hurt Australian recovery


Savings ratio: Surfers ride their boards in front of a British Airways plane preparing to take-off at Sydney International Airport. The strongest detractor from growth is transport services, particularly reduced air travel, says an expert at the statistics bureau. — AFP

SYDNEY: Australia’s economic weakness persisted in the three months through June as consumers hunkered down in the face of elevated borrowing costs and stubbornly sticky inflation.

Gross domestic product (GDP) advanced 0.2% from the prior quarter, propped up by government spending and matching economists’ estimate, Australian Bureau of Statistics data showed yesterday.

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