Australian Growth Misses Estimates as Household Spending Falters

Australia’s economy grew slower than forecast as household spending rose at the weakest pace since the 2008 financial crisis, reinforcing the likelihood of the central bank keeping interest rates on hold for longer.

The data reinforce a divide between an increasingly confident business community that’s hiring and investing and more pessimistic consumers saddled with record debt as reflected in their weak spending and lower savings. Given that consumption accounts for more than half of gross domestic product, the Reserve Bank of Australia is unlikely to add to households’ woes by lifting borrowing costs from the current record-low 1.5 percent.