Australian economy continues to grow

Australia's economy grew by 0.6 per cent in the three months to June, according to seasonally-adjusted official figures.

The level of growth was down from the 1.4 per cent recorded in the previous three months, but was more in line with the 0.7 and 0.6 per cent increases in the two quarters before that.

Such information may have been important in persuading the Reserve Bank of Australia to hold interest rates at 3.5 per cent this week, but those seeking low interest home loans might want to bear in mind the possibility of cuts in the future due to worries about China's economy.

Concerns also exist regarding the impact of the eurozone crisis, should the single currency collapse and lead to a fall in demand for Australian exports.

One very positive aspect of the economic situation is the continued growth in business investment, with government figures showing this climbed by 3.4 per cent in the second quarter of 2012.

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