Australia's GDP rises 0.6% in June quarter, 1.8% YoY

The domestic final demand was the main driver of growth led by household and government spending. Public investment was the largest detractor from growth, ABS said in a press release.

The net trade also contributed to GDP growth. The GDP per capita increased 0.2 per cent this quarter, following a decrease in the March quarter.

Tom Lay, ABS head of national accounts, said: “Economic growth rebounded in the June quarter following subdued growth in the March quarter, which was heavily impacted by weather events.”

The public investment fell 3.9 per cent and was the largest detractor from growth. Excluding the COVID period, this was the largest fall since September 2017. Government final consumption expenditure rose 1 per cent in the June quarter after recording 0.3 per cent growth in the March quarter.

National non-defence expenditure was the biggest contributor with the strongest quarter on quarter rise in social benefits to households over the 2024-25 financial year.

Private investment remained relatively unchanged, increasing 0.1 per cent in the June quarter, following a 0.6 per cent rise in the March quarter.

The net trade contributed to growth in the June quarter, adding 0.1 percentage points to GDP. Imports of goods also detracted, led by consumption goods including clothing and footwear.

The household saving to income ratio fell to 4.2 per cent in the June quarter from 5.2 per cent in the March quarter. The rise in gross disposable income of 0.6 per cent was outpaced by a rise in nominal household spending of 1.5 per cent.

The rise in gross disposable income was driven by growth in compensation of employees (+1.2 per cent), added the release.

ALCHEMPro News Desk (SG)