Global Economic News

Australia GDP Expands 0.5% On Quarter In Q2

Australia's gross domestic product climbed a seasonally adjusted 0.5 percent on quarter in the second quarter of 2016, the Australian Bureau of Statistics said on Wednesday.

That was shy of expectations for 0.6 percent following the downwardly revised 1.0 percent increase in the first quarter (originally 1.1 percent).

On a yearly basis, GDP gained 3.3 percent - matching forecasts and up from the downwardly revised 3.0 percent gain in the three months prior (originally 3.1 percent).

Terms of trade increased 2.3 percent on quarter and fell 5.4 percent on year.

The largest contributors to this growth were mining (0.8 percentage points), financial and insurance services (0.5 percentage points), public administration and safety (0.3 percentage points), construction (0.2 percentage points) and wholesale trade (0.2 percentage points) industries.

Manufacturing (-0.2 percentage points) was the largest detractor.

Compensation of employees added 0.5 percent in the June quarter to be 3.1 percent higher through the year.

Also on Wednesday, the Australian Industry Group said that the construction sector in Australia turned back to contraction in August with a Performance of Construction Index score of 46.6.

That's down sharply from 51.6 in July, and it falls beneath the boom-or-bust line of 50 that separates expansion from contraction.

Among the individual components of the survey, engineering and commercial construction expanded, while new orders, supplier deliveries and employment all fell back into negative territory.

by RTTNews Staff Writer

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