Total gross fixed capital formation rose by 2.4 per cent, fuelled by increases in both public and private investment. Easing supply chain constraints and improved weather conditions positively impacted trade in goods and changes in inventories. Despite a $3.4 billion fall in the change in inventories, detracting 1.1 percentage points from GDP growth, net trade in goods contributed 0.5 percentage points to GDP growth.

Goods exports saw a 2.5 per cent rise in the June quarter, aided by improved weather and fewer bottlenecks at ports. This occurred despite a 1.3 per cent decrease in underlying mining production. On the other hand, goods imports slightly fell by 0.2 per cent, leading to a $2.4 billion drawdown in retail and wholesale inventories, as per ABS.

Household spending remained subdued, growing by just 0.1 per cent and adding 0.1 percentage points to GDP growth.

In terms of prices, nominal GDP fell by 1.2 per cent in the June quarter but rose by 9.7 per cent over FY23. The GDP implicit price deflator dropped by 1.5 per cent during the quarter, mainly due to a 7.9 per cent fall in the terms of trade. Export prices declined more than import prices, falling by 8.2 per cent compared to a 0.3 per cent decrease in import prices. Meanwhile, domestic price growth remained steady at 1.2 per cent.

“This was the seventh straight rise in quarterly GDP, and annual growth remained above trend, reflecting the absence of significant COVID-19 disruptions, such as lock downs, in 2022-23," said Katherine Keenan, ABS’ head of national accounts.

Fibre2Fashion News Desk (DP)