Australia’s economic growth slows, reducing chance of another interest rate rise next year

Economy grows more slowly than expected, with consumer spending flat under the pressure of high interest rates

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Australia’s economy surprisingly slowed in the September quarter, as the toll of higher interest rates hit consumers and trade turned negative.

Gross domestic product expanded 0.2% in the September quarter compared with the previous three months, marking an eighth consecutive quarter of growth, the Australian Bureau of Statistics said on Wednesday. Economists had forecast GDP growth would quicken to 0.5% from 0.4% in the June quarter.