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Australia’s June quarter growth slows as consumption rises on EV demand
Australia’s real GDP rose 0.4% in the three months to June, with EV and hybrid sales helping power consumption even as inflation and global volatility remain key concerns.
Australia’s economy grew modestly in the three months to June, according to new national accounts from the Australian Bureau of Statistics, with real GDP expanding 0.4% in the quarter.
ABS data also showed consumption strength driven by record sales of electric vehicles and hybrids, which accounted for three-quarters of the 0.4% quarterly growth in spending, even as growth eased on a year-on-year basis from 2.5% to 2.1% between the March and June periods.
The figures were released against a backdrop of challenging international circumstances, and the treasurer highlighted ongoing pressure from inflation, productivity concerns, and global volatility.
Economists said the accounts point to too little growth and too much inflation, with forecasts calling for further slowing through 2026 toward 1.3% to 1.5% growth. The national accounts also showed disposable household incomes rose 0.6% in the quarter after inflation, slipping to 0.3% when adjusted for population, while CBA’s economics chief said households appeared largely insulated from the Middle East conflict during the period.