Public sector spending up 4.5% in June qtr

Public sector spending rose 4.5 per cent in real terms and will add strongly to June quarter GDP growth.

Public sector spending rose strongly in the June quarter, official figures show. (AAP)

Public sector spending rose strongly in the June quarter, Australian Bureau of Statistics figures show.

The 4.5 per cent rise, adjusted for price changes and seasonality, was boosted by an unusually large volume of second hand assets purchases by the public sector.

While the overall increase in pubic spending implies a contribution of about one percentage point to growth in gross domestic product to be reported on Wednesday, nearly half of that will be offset by the corresponding reduction in private sector investment due to the transfer of the second-hand assets.