The latest ABS data shows Australia’s economy is weaker than expected. Hopefully this will kill off talks of budget cuts and higher interest rates.

Otherwise, the economy could be in for a bumpy ride.

In the lead-up to the latest release of GDP figures, the talk was the economy had turned a corner.

It was believed that October’s unexpectedly high inflation numbers were evidence the economy was coming back to life, led by householders who were ready to start spending again. Economic growth was expected to be a healthy 0.7 per cent.

But the latest economic growth figures should give everyone pause for thought. Coming in at a much weaker 0.4 per cent for the September quarter, it was well down on expectations. The annual growth rate was a rather sad 2.1 per cent.

Economic growth is slowly gaining momentum, quarter by quarter, but it would be better described as crawling faster, rather than a brisk walk. As the graph below shows, growth has picked up but from a very weak position.

The two big drivers of growth were household spending and private investment. On the surface this appears great news. Stronger household spending might signal more optimistic consumers, an essential ingredient for any recovery. And more private investment is great news after years of business refusing to........

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