Two-year low for Australia expansion
Australia's economy expanded at the slowest annual pace in almost two years as manufacturers and builders endured strong falls in output, writes Michael Heath.
Gross domestic product expanded 2.5pc in the first quarter from a year earlier, the weakest reading since the second quarter of 2011, a Bureau of Statistics report released in Sydney showed. Economists predicted a 2.7pc gain.
The slowdown provoked suggestions of interest rate cuts. The Reserve Bank of Australia has slashed borrowing costs to 2.75pc to combat currency strength that prompted Ford Motor to cease operations and eliminate 1,200 jobs.The local dollar declined to 95.61 US cents yesterday. (Bloomberg)