GDP downgrades likely, dollar falls as business investment shrinks

Business investment contracted more than 9 per cent in the third quarter, suggesting economic growth in the three months to the end of September will next week come in below expectations.

Economists were expecting only a 3 per cent decrease, and the Aussie dived from around US72.60¢ to US72.24¢ on the news.

The ABS said total new capital expenditure for the three months to the end of September came in at $31.4 billion, down 9.2 per cent on the June quarter and 20 per cent on the same time last year.