The Australian economy grew by 0.6 per cent over the three months to the end of September as national income continued to slide.
The Australian Bureau of Statistics reported today that at an annual rate the economy expanded by 2.3 per cent.
Analysts earlier this week revised upwards their forecast for the quarter based on better than expected trade figures.
Most had tipped a quarterly increase of 0.7 per cent for an annual GDP growth rate of 2.6 per cent.
The Australian dollar dropped almost half a cent on the figures that suggest the economy is not yet picking up speed.
According to the bureau, public gross capital formation, net exports and final consumption spending added to the economy through the September quarter.
But private capital spending detracted 1.4 percentage points from growth in a sign the slowdown in the mining sector is now hitting the overall economy.
Housing spending lifted by 0.4 per cent driven by the insurance sector and rents. Government final spending grew by 1.1 per cent.
But private capital spending dropped by 5.7 per cent led by a 12.6 per cent fall in non-dwelling construction.
Despite the drop in construction, the mining industry added substantially to growth as exports lifted with iron ore the stand out performer.
There were some positive signs for corporate Australia with operating profits rising by 0.7 per cent.
WA's State final demand lifted by just 0.1 per cent to be down 2.2 per cent over the past year.
The ACT was the best performed State or Territory, with demand there growing by 1.7 per cent.
In the lead up to the September election, households slightly increased their saving level.
The figures are important for the upcoming mid-year Budget update and suggest tax revenue will be sluggish.