Consumers have stepped up and driven a big rise in growth in the September quarter. But for how long can they keep spending – and when will business join in?
The Australian consumer was the hero of Australia’s third quarter GDP performance, managing to boost Australia’s recovery despite high unemployment, lockdown, and wages cuts — and further cuts in investment by Australian businesses.
The national accounts for the three months to September showed the economy moving strongly back into positive territory after two consecutive quarters of contraction, with 3.3% quarterly growth in the quarter.
The stronger-than-expected result was fueled by household spending, which rose 7.9% in the quarter after a fall of over 12% in the June quarter. That meant household final consumption expenditure added 4.0 points to the GDP result, a burst of spending in the three months to September that more than offset any negative impact from the second Victoria lockdown.
