Recession confirmed - GDP falls
11:10AM Friday Sep 26, 2008

GDP shrank 0.2 per cent in the June quarter, confirming what everyone already knew - that the country is in recession.

The smaller than expected June quarter decline followed a fall of 0.3 per cent in the three months to March, so the country now meets the common definition of recession: two consecutive quarters of economic contraction.

Tight credit conditions and high costs dented domestic spending, while drought affected agricultural production.

For the year to June, GDP rose 2.6 per cent.

Service industries decreased 0.4 per cent in the latest quarter, following an increase of 0.5 per cent in the March 2008 quarter.

The main drivers of the decline in service activity were real estate and business services (down 1.6 per cent), and retail, accommodation and restaurants (down 1.9 per cent).

More here.