Australian economy tipped for 0.7% rise

Economists predict the national accounts will show the Australian economy expanded by 0.7 per cent in the three months to June.

Australians splashing some cash are expected to have helped the economy grow in the June quarter.

Economists have tipped the national accounts will show 0.7 per cent in growth in the quarter when they are released on Wednesday.

The rise would mean the economy had expanded by 2.8 per cent compared with a year before.

A rebound in consumer spending and lifts in house construction and public spending are expected to have contributed to such growth, AMP chief economist Shane Oliver said.

Factors believed to have kept it at bay include weak business investment, just a small contribution from net exports and a slight detraction from inventories, Dr Oliver said.

This month's rise would follow a 1.0 per cent growth in the three months to March, which marked the strongest lift in almost two years.

Westpac senior economist Andrew Hanlan said a slowdown was likely on the back of that result, which benefited from driven by strong inventories and net exports.

"A repeat of this appears unlikely," he said.

The Reserve Bank of Australia expects a 0.9 per cent increase in the quarter, with average growth across the financial year of 3.25 per cent.


Share

2 min read

Published

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world