Core Insights - Australia's GDP grew by 0.4% quarter-on-quarter and 2.1% year-on-year in Q3 2025, marking the 16th consecutive quarter of growth, although the quarterly growth was below market expectations and lower than Q2's 0.7% [1][2] - The growth was primarily driven by domestic final demand, with private investment increasing by 2.9% and household consumption rising by 0.5% [1][2] Economic Performance - Government spending increased by 3% in Q3, while household consumption rose by 0.5% and private sector investment grew by 2.9% [1] - Public sector investment also saw a 3% increase [1] Trade Dynamics - Net trade negatively impacted GDP growth by 0.1 percentage points, as export growth of 1% was offset by import growth of 1.5% [2] - Commodity exports rose by 1.3%, driven by non-farm products, with coal exports recovering from previous shipping delays [2] - Service exports remained flat, primarily due to a 0.6% decline in travel services, influenced by reduced overseas student spending [2] Import Trends - Total imports increased by 2.1%, with intermediate goods imports rising by 4.2% and capital goods imports growing by 6.7%, reflecting increased investment in electronic and communication equipment [2] - Service imports decreased by 0.2%, attributed to fewer Australians traveling with foreign airlines [2] Household Financial Health - Household savings rate increased from 6% in Q2 to 6.4% in Q3, with total disposable income growing by 1.7%, outpacing nominal household spending growth of 1.4% [3] - Strong growth in disposable income was supported by increased employee compensation and robust performance in the domestic stock market, leading to higher pension investment returns [3]

Core Insights - Australia's GDP grew by 0.6% quarter-on-quarter and 1.8% year-on-year in Q2 2025, marking the 15th consecutive quarter of growth, surpassing market expectations and previous quarters' performance [1] - The main drivers of economic growth were domestic final demand, primarily fueled by increases in household and government spending, while public investment was a significant drag on growth [1] - The economic growth forecast for the fiscal year 2024-25 is set at 1.3% [1] Economic Performance - Government spending increased by 1% and household consumption rose by 0.9% in Q2 2025 [1] - Private sector investment saw minimal growth of 0.1% due to a decline in residential investment and new construction projects, while public sector investment decreased by 3.9% [1] Trade and Exports - Overall goods exports increased due to a rebound in iron ore and liquefied natural gas exports, alongside growth in service exports driven by an increase in short-term visitors to Australia [2] - However, the increase in Australians traveling abroad and higher spending per traveler negatively impacted net trade growth, with a significant drag from service imports [2] - A decrease in imports of consumer goods such as automobiles and clothing also affected the overall goods imports for the quarter [2] Household Financials - The household savings rate fell from 5.2% in Q1 to 4.2% in Q2 2025, while total disposable income grew by 0.6%, lagging behind the 1.5% increase in nominal household spending [2]

Core Insights - Australia's GDP grew by 0.6% quarter-on-quarter and 1.8% year-on-year in Q2 2025, marking the 15th consecutive quarter of growth, surpassing market expectations and previous quarters' performance [1] - The main drivers of economic growth were domestic final demand, primarily fueled by increases in household and government spending, while public investment was a significant drag on growth [1] - The economic growth forecast for the fiscal year 2024-25 is set at 1.3% [1] Economic Performance - Government spending increased by 1% and household consumption rose by 0.9% in Q2 2025 [1] - Private sector investment saw minimal growth of 0.1% due to a decline in residential investment and new construction projects, while public sector investment decreased by 3.9% [1] Trade and Exports - Overall goods exports increased due to a rebound in iron ore and liquefied natural gas exports, alongside growth in service exports driven by an increase in short-term visitors to Australia [2] - However, the increase in Australians traveling abroad and higher spending per traveler negatively impacted net trade, while a reduction in imports of consumer goods like automobiles and clothing also affected overall goods imports [2] Household Financials - The household savings rate fell from 5.2% in Q1 to 4.2% in Q2 2025, with disposable income rising by 0.6%, which was lower than the 1.5% increase in nominal household spending [2]