Australia suffered its biggest economic contraction since the financial crisis in the third quarter, as torrential rain and falling business investment left the country at risk of slipping into its first recession in a quarter of a century.
The economy shrank by 0.5pc in the three months to September compared with the previous three months, according to the country's statistics bureau.
This was the first economic contraction since the Queensland floods in 2011 and the worst decline since 2008. Economists had expected a shallower drop of 0.1pc.
The fall was driven by a drop in investment and net trade, while the second wettest winter in 100 years weighed on the construction industry, where output fell 3.6pc compared with the previous quarter.
Consumer spending helped to limit the decline, with household expenditure rising by 0.4pc over the quarter. However, economists said the country's high household debt levels would amplify a shock if a downturn hit.
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