Australia's economy put in another subpar performance last quarter as domestic demand disappointed and consumers chose to save rather than spend, although a solid contribution from international trade helped avoid something worse.
Gross domestic product rose 0.6 percent in the third quarter from the previous quarter, when it increased 0.7 percent, the Australian Bureau of Statistics said. That was less than analysts' median forecast of 0.8 percent, with many sectors of the economy showing little or no growth at all.
If not for a sizable boost to growth from net exports, GDP would have actually contracted in the quarter. Investors reacted by sending the local dollar down half a U.S. cent as the data slightly added to the case for another cut in interest rates.
"It very much confirms the idea of an economy that is running around sub-trend pace and has a number of challenges," said Su-Lin Ong, a senior economist at RBC Capital Markets.