GDP beats expectations in Q2

By Mitchell Neems

Australian Bureau of Statistics data showed gross domestic product (GDP) in the three months to the end of June grew a seasonally adjusted 0. 5 per cent, driven by capital spending and consumption spending.

An AAP survey of 15 economists expected the data would show the economy grew by 0. 4 per cent in the June quarter, and three per cent over the year.

The results follow a strong March quarter, when the annual economic growth rate was 3. 5 per cent — the fastest pace in two years.

The Australian economy has pulled back from the fastest pace of growth in two years, but grew more than expected in the second quarter, according to official data.

It forecast growth of 2  per cent to 3 per cent for the financial year to June 2015, down from the RBA's previous estimate of 2. 25 per cent to 3. 25 per cent.

In its latest quarterly Statement on Monetary Policy, the RBA said it expects GDP growth of 2. 5 per cent for the calendar year, a cut to its May forecast of 2. 75 per cent.

Read more here: Business Spectator

    

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