Australian national accounts, June quarter 2025

Q2 GDP: 0.6%qtr, 1.8%yr. Q2 Domestic Demand: 0.5%qtr, 2.2%yr.

The Australian economy grew a solid 0.6%qtr in the June quarter 2025. This was the first time since the March quarter 2023 that GDP per capita grew on an annual basis.
The upside came on the back of stronger than expected consumer spending, which lifted 0.9%qtr. While some of this appears to be due to one-offs relating to holiday timing and sales discounts, underlying momentum looks firmer consistent with rising growth in household disposable incomes and improving consumer sentiment.
Outside the consumer, new business investment declined, while we have now passed the peak in terms of the public demand contribution to growth.
The key uncertainty is whether the pick-up in consumption will continue and how long it will take for investment to turn around. It is possible we could still get a shaky handover, but given today’s outcome, this seems less likely.

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