Economy still stuck in the slow lane growing at 1.7pc as consumers hold back

The much anticipated turning point in Australia's economic fortunes still seems someway down the road, with GDP growing at a well below average annual pace of 1.7 per cent. 

The economy grew 0.4 per cent over the September quarter, below expectations and slower than the previous two quarters. 

ABS chief economist Bruce Hockman says the recent tax cuts failed to stimulate household spending.

Here's my report from The World Today

Tepid growth tipped as iron ore and coal hold up Australia's 28 year recession free run

Surging iron ore and coal prices are tipped to underpin better-than-expected economic growth as Australia's 28 year recession free run continues. 

However, soft retail sales in the leadup to Christmas show consumers remain cautious despite three official interest rate cuts this year. 

BIS Oxford Economics chief economist Sarah Hunter speaks with ABC's Peter Ryan.