The Australian economy has recorded another quarter of anaemic growth exposing business to even tougher conditions, according to the country’s largest and most representative business network.

Today’s national accounts reveal the economy growing at the slowest pace since the early 1990s, while GDP per capita has gone backwards for the sixth quarter in a row.

The Australian Chamber of Commerce and Industry (ACCI) says the June quarter economic growth figure of 0.2 per cent shows the cost-of-living pressures impacting household budgets are also having a flow on effect to business.

ACCI’s chief of policy and advocacy David Alexander says today’s national accounts figures showing another quarter of negative productivity and rising labour unit costs paint a grim picture for business conditions in Australia.

“Productivity has again turned down, contracting 0.8 per cent in the quarter.

“Declining productivity, coupled with rising labour costs and falling profits, show just how tough conditions are for business.” Mr Alexander said.

“The fact the annual growth figure is now at only one per cent should be sounding alarm bells in Canberra.

“Economic activity continues to deteriorate from 1.5 percent last year, to 1.1 per cent in March.

“If we are to get the economy back on track we need to lift productivity, and this means moving to more flexible workplace relations arrangements,” said Mr Alexander.

“High migration is masking backwards movement in GDP per capita, and the emerging pattern of bigger economy, poorer people is a matter of deep concern.

“Large increases in public sector spending are also flattering the growth figures, with public spending up 1.4 per cent.

“Businesses are suffering falling profits and higher costs and yet they are being expected to fund an ever-growing public sector. This a recipe for further economic problems down the track.

“Falling profits are clearly impacting on business confidence, with investment in machinery and equipment contracting 2.4 per cent and non-dwelling construction down 2.2 per cent.”