Australia's economy grows 0.4% in the June quarter as households stay cautious

Australia's gross domestic product rose 0.4% in the June quarter of 2026, the Australian Bureau of Statistics reported on 2 September. The economy was 2.1% larger than a year earlier. For the 2025–26 financial year as a whole, GDP grew 2.4%, and GDP per capita rose 0.8%.

Grace Kim, the ABS head of national accounts, said growth remained subdued because households continued to behave cautiously.

What drove the quarter

• Household consumption rose 0.4%, with vehicle purchases up 10.3%.
• Private business investment fell 0.5% in the quarter, although it was 10.4% higher than a year earlier.
• Exports rose 0.8%. Imports of goods rose 2.4% and imports of services fell 4.9%; overall, net trade added 0.1 percentage points to growth.
• Compensation of employees rose 1.5%.
• The household saving ratio was 6.5%.

What it means for the Australian dollar

The Reserve Bank of Australia held its cash rate at 4.35% in August and said it was prepared to raise it again (report). Modest growth gives the RBA little reason to hurry, but its decisions will turn more on inflation than on GDP.

For AUD/USD, demand from China matters too: see China's August inflation data and the guide to commodity currencies. Australia reports growth quarter-on-quarter rather than annualized; GDP explained shows how to compare it with US and Canadian figures.