Business investment pushes GDP up
The economy grew by 4.3 per cent in the year to June, and was up by 0.9 per cent in the quarter, placing further pressure on interest rates. Contributing to the result was an increase in business investment of 4.9 per cent in the quarter and 13.1 per cent annually, with the ratio of business investment to GDP at its highest ever, about 28 per cent. The drought continues to take its toll on economic growth with output in the rural sector falling by 11 per cent in the June quarter, and down 26 per cent on a year ago. Financial markets now put the chance of another rate rise in the next six months at 70 per cent.