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%.