3 Jun 2010

Govt spending still drives growth in Australia

7:21 pm on 3 June 2010

Government spending continues to prop up growth in Australia.

Official figures show growth slowed to 0.5% in the March quarter, led by public investment in infrastructure and household consumption, which offset shrinking business investment.

On an annual basis, gross domestic product climbed 2.7%.

The Bureau of Statistics says public expenditure on infrastructure and buildings was the main positive contributor to GDP growth.

Household consumption also grew, adding 0.3 percentage points to economic growth.

However, the ABC reports business investment in equipment and buildings was a major drag, with the fall in that sector subtracting 0.6 percentage points from GDP.