Aussie households power along as rate rises yet to put brakes on economy
The Australian economy continues to expand, with the full weight of rapid interest rate hikes yet to show up in growth figures.
September quarter national accounts showed the economy grew by 0.6 per cent, which followed a 0.9 per cent lift in the June quarter.
In the 12 months to September, the economy swelled by 5.9 per cent from a low base in the third quarter of 2021 caused by lockdowns.
“The September quarter was the fourth consecutive quarter of economic growth, following a contraction in the September quarter 2021, which was impacted by the COVID-19 Delta outbreak,” ABS head of national accounts Sean Crick said.
Experts were anticipating a 0.7 per cent lift over the quarter, with some economists expecting a slightly higher result.
The Australian Bureau of Statistics said household spending drove growth in the September quarter, lifting 1.1 per cent for the quarter and contributing 0.6 percentage points to GDP.
Treasurer Jim Chalmers said GDP was a backwards-looking indicator and the fall-out from successive interest rate rises was yet to weigh heavily on economic activity.
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The national account figures follow the eighth consecutive rate hike in a row on Tuesday.
The RBA has been lifting interest rates since May in a bid to slow down inflation.
NAB, ANZ and Westpac have already passed on the interest rate hike to mortgage holders in full.
For the average $750,000 loan, the 25 basis point lift will add $1251 to monthly repayments since May, according to RateCity data.
“When it comes to the decisions taken independently by the Reserve Bank to jack up interest rates, the impact on people is immediate but the impact on the economy typically takes some months,” Chalmers told Seven News on Wednesday.
“And so there is still a bit of uncertainty when the full impact of these rate rises will kick in on the economy.”
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Shadow treasurer Angus Taylor said the government missed its opportunity to take the pressure off interest rates in the October budget.
“We’ve had senior labour economists say that it’s left the Reserve Bank carrying the can and they’re carrying a very heavy can on this one,” he told reporters in Canberra.
“That’s a disappointment.”Elsewhere, the jobs market appears to be settling back into normal seasonal patterns according to the latest jobs data from SEEK.
National job ads fell 4.9 per cent over the month of August and 8.2 per cent over 12 months.
The sharp annual decline was from a high base, however, with employers recruiting at volume after lockdowns in the larger states.
SEEK managing director Kendra Banks said it wasn’t unusual for hiring activity to quieten down in the lead up to Christmas.
“After two years of holiday seasons and hiring impacted by Covid-19, this year appears to have returned to a more normal seasonal pattern, where job advertising slows from October to November,” she said.
Tourism and hospitality jobs saw the steepest monthly decline, with job volumes sliding 13.5 per cent.
