THE NEWS WRAP: Mining investment grows while consumer spending remains flat

The gap in Australia’s business haves and have nots will increase as mining investment grows and consumer spending remains flat, according to a new report.

Deloitte Access Economics said that Australia’s “two speed” economy is being driven by conservative consumers, a slowdown in the home construction industry and a booming mining sector.

“It may be a lopsided period in Australian growth, but growth it will be,” Deloitte Access Economics director Chris Richardson said in a statement on Tuesday.

“And the split in that growth is widening further.”

Swan warns states over GST

Federal treasurer Wayne Swan has warned the states that he will act in the “national interest”, rather than allow states to have priority in the distribution of GST revenues.

Swan’s comments come as an independent review looks at how GST should be spread in order to benefit Australia’s changing economy. 

Facebook revenue slips

Facebook’s quarterly revenue has dropped 6.5% compared with the fourth quarter of last year, the company has revealed.

Income stood at $US1.058 billion for the first quarter of this year, with Facebook growing its mobile user base to 500 million, with an overall total of 901 million active monthly users.

Overnight

The Dow Jones Industrial Average was down 102.09 points, or 0.8%, to 12,927.17. The Australian dollar edged up to 103.19 US cents.