End of the golden run in Australia?

The Australian economy may be on course to record its first quarter of negative growth since 2000, with new figures showing a surprise contraction in the previously booming construction sector.

National accounts figures due next Wednesday - one day after the Reserve Bank of Australia (RBA) is expected to cut interest rates - are expected to reveal that the economy grew at a snail's pace in the three months to June, the Sydney Morning Herald reported today.

Business investment figures due today are expected to show firms shelving future investment plans as credit becomes harder to obtain and the economy cools.

The RBA is forecasting economic growth will slow to 2 per cent by the end of this year, the report said.