Australia Economy Grows More Than Forecast

Australia’s economy grew faster than estimated last quarter on consumer spending and mining-driven investment, spurring the local currency as investors pared bets on the pace of interest-rate cuts next year. Gross domestic product rose 1 percent in the three months ended Sept. 30, after growing a revised 1.4 percent the prior quarter, the fastest pace in four years. The data show the only Group of 10 economy to avoid a recession during the global credit crisis was well placed before Europe’s sovereign-debt crisis intensified, Citigroup Inc. economists said. Reserve Bank Governor Glenn Stevens has lowered rates at consecutive meetings for the first time since 2009, and investors today reduced odds for a 50-basis-point cut on Feb. 7. The Australian dollar rose after the report, buying $1.0268 at 1:30 p.m. in Sydney from $1.0243 before the data. China is Australia’s biggest trading partner and its demand for iron ore, coal and energy drove the nation’s terms of trade -- a measure of export prices relative to import prices -- to a record this year.