Treasurer Josh Frydenberg says the latest growth figures show the Australian economy is strong.
Australian economic growth slowed to a below-expectations 0.3 per cent in the September quarter, and to 2.8 per cent over 12 months, according to official figures released on Wednesday.
"The Australian economy is strong and is in good shape," Mr Frydenberg told reporters in Canberra.
Household spending rose 0.3 per cent during the quarter, driven by spending on food, insurance and other financial services, transport services and health.
But spending on durable goods such as cars, furnishings and household equipment, and clothing and footwear fell, indicating that consumers may be feeling the pinch.
Net exports contributed 0.3 percentage points on a decline in imports.
Mr Frydenberg said there was good news on the wages front.
"Average earnings in the national accounts increase by 0.2 per cent in the quarter to be 1.2 per cent higher through the year and the wage price index for September is up 2.3 per cent through the year - the fastest and largest jump in three years," he said.
"Wages can be expected to rise further as labour market conditions continue to be strong."
