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Australia's Economy Slows in Second Quarter
Higher borrowing costs and costly fuel weighed on households, but vehicle purchases jumped 10% and helped keep growth above forecasts, the Australian Bureau of Statistics said.
- On Wednesday, The ABS reported quarterly economic growth rose 0.4% in the June quarter, bringing annual growth to 2.1%, exceeding market forecasts of 1.8%.
- Spending patterns shifted with electric vehicle purchases jumping 10%, adding 0.3 percentage points to GDP, while Dwelling investment rose 1.6% despite Business investment falling 0.5%.
- ABS head of national accounts Grace Kim said the rise in electric vehicle purchases may reflect households taking a 'longer-term approach' to cost of living pressures.
- Markets boosted the odds of a fourth Reserve Bank interest rate hike this month to 57%, with trimmed mean inflation at 3.6% remaining above the RBA's 2% to 3% target.
- Capital Economics Asia-Pacific head Marcel Thieliant said the bank will 'probably hike rates again before long,' noting the economy remains close to trend, meaning excess capacity is not being eroded.
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16 Articles
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The Australian economy expanded by 0.4% quarter-on-quarter in the second quarter of 2026, accelerating from a 0.3% growth rate in Q1 and topping market expectations of 0.3%. On an annual basis, GDP rose 2.1%, slowing from 2.5% in the prior quarter to
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Australia’s economy grows by 2.1%, but people’s living standards aren’t keeping pace
Grant Faint/Getty ImagesAustralia’s economy expanded by 0.4% in the June quarter, with spending growth driven by record sales of imported electric vehicles. For the year to June, gross domestic product (GDP) grew by 2.1%, according to the Australian Bureau of Statistics, slightly stronger than market expectations. The bureau noted overall growth remained subdued, with spending growth and business investment only in “pockets” of the economy. But …
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Coverage Details
Total News Sources16
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
Factuality
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