SYDNEY: Australia's economy beat expectations in the second quarter, official data showed today, with rising household spending the key driver of growth.
The Australian Bureau of Statistics said the economy grew by 1.8% compared to the same period last year - up 0.4 percentage points from the first quarter.
"What we saw in the June quarter was the equal fastest quarterly growth rate in almost three years, and the fastest annual growth rate in almost two years," treasurer Jim Chalmers told reporters.
"Our economy is in an enviable position despite all our challenges," he said.
Data showed household spending was one of the main contributors to growth, with non-essential spending climbing 1.4% fuelled by end-of-financial-year sales and new product releases.
"Monday's results were higher than the 1.6% growth anticipated by economists and Australia's central bank," local media said.
The Reserve Bank of Australia cut its key interest rate to its lowest in two years last month, but warned global challenges tied to trade tensions caused persistent uncertainty.
Though inflation has eased since its peak of 7.8% in December 2022, the high cost of food, fuel, and housing remains a drag on consumer spending.