Fears over slowdown

ECONOMIC growth slowed in the final three months of 2017 and economists say there is a risk it may not hit the speeds the Reserve Bank expects in the current year.

Gross domestic product growth of 0.4 per cent in the three months to December was down on the September quarter’s 0.7 per cent, and left annual growth at 2.4 per cent, one percentage point below the RBA’s forecast.

Household consumption drove growth in the December quarter, rising one per cent as people spent more on health services, hotels, cafes and restaurants, and recreation and culture.

Trade was a weight on economic growth, as exports of rural goods and travel services fell, along with an expected drop in private infrastructure spending as mining investment continues to wind down.

AMP Capital economist Shane Oliver said economic growth was weaker than expected. He said the RBA’s forecast of economic growth improving to three per cent may not be reached.