Australia's gross domestic product (GDP) grew by 0.2 per cent in the second quarter of 2024, following a 0.1 per cent increase in the March quarter, aligning with Bloomberg's forecasts but slightly below Reuters' prediction of 0.3 per cent.
On an annual basis, the economy expanded by 1 per cent, marking its slowest pace since the early 1990s, excluding the pandemic, and in line with Reuters' forecast. GDP per capita declined for the sixth consecutive quarter, decreasing by 0.4 per cent in June.
Despite the Reserve Bank of Australia's efforts to slow the economy and curb inflation through a cash rate hike to 4.35 per cent since 2022, inflation remains stubborn. The recent GDP partials indicated mixed results, with weaker-than-expected net exports but a sharp increase in government spending.
The upcoming August employment report, due on September 19, will precede the RBA's policy meeting on September 24, where it is expected to maintain the current interest rates for the seventh consecutive time.
At 11:35am, the S&P/ASX 200 is 1.68 per cent lower at 7,966.80.
The SPI futures are pointing to a fall of 149 points.
Best and worst performers
All sectors are in the red. The sector with the fewest losses is Industrials, down 0.52 per cent. The worst-performing sector is Energy, down 2.66 per cent.
The best-performing large cap is Mercury NZ (ASX:MCY), trading 3.16 per cent higher at $5.88. It is followed by shares in Meridian Energy (ASX:MEZ) and Auckland International Airport (ASX:AIA).
The worst-performing large cap is GQG Partners (ASX:GQG), trading 5.11 per cent lower at $2.60. It is followed by shares in REA Group (ASX:REA) and Pilbara Minerals (ASX:PLS).
Commodities and the dollar
Gold is trading at US$2523.10 an ounce.
Iron ore is 3.0 per cent lower at US$93.30 a tonne.
Iron ore futures are pointing to a 1.6 per cent fall.
One Australian dollar is buying 67.02 US cents.
