Australian Economy Surprises with Stronger-Than-Expected Growth

Australia's economy has shown stronger-than-expected growth in the June quarter, with annual growth reaching 2.1%, according to data from the Australian Bureau of Statistics (ABS). The quarterly growth rate was 0.4%, beating economists' expectations of 0.3%.

The RBA had forecasted an annual growth rate of 1.9%, but the actual result came in above that. ABS head of national accounts, Grace Kim, noted that household consumption rose 0.4% in the quarter, with spending subdued across most categories, except for vehicle purchases, which jumped 10.3%.

The growth is a challenge for the Reserve Bank of Australia (RBA), as it suggests that the economy may not be cooling as quickly as expected. RBA deputy governor Andrew Hauser had stated that consumer spending and employment growth would need to slow further before inflation could return to target.