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

> GDP rose 0.4% in the June quarter of 2026 and 2.1% over the year, the ABS said on 2 September, with vehicle purchases up and business investment lower.

- Canonical URL: https://forextradingcommunity.com/news/australia-gdp-june-quarter-2026/
- Type: Data
- Published: 2026-09-14
- Updated: 2026-09-14
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: AUD

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](/news/rba-holds-cash-rate-4-35-august-2026/)). Modest growth gives the RBA little reason to hurry, but its decisions will turn more on inflation than on GDP.

For [AUD/USD](/markets/aud-usd/), demand from China matters too: see [China's August inflation data](/news/china-inflation-august-2026/) and the guide to [commodity currencies](/news/commodity-currencies-aud-nzd-cad-nok/). Australia reports growth quarter-on-quarter rather than annualized; [GDP explained](/news/gdp-explained-for-forex-traders/) shows how to compare it with US and Canadian figures.

## Sources

- [Australian Bureau of Statistics: Australian economy grew 0.4% in the June quarter](https://www.abs.gov.au/media-centre/media-releases/australian-economy-grew-04-june-quarter)
- [Australian Bureau of Statistics: Australian National Accounts, June 2026](https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release)

## Common questions

### How much did Australia's GDP grow in the June quarter 2026?

0.4% in the quarter and 2.1% compared with the June quarter of 2025, according to the Australian Bureau of Statistics.

### What was Australia's GDP growth for 2025–26?

GDP grew 2.4% in the 2025–26 financial year, and GDP per capita rose 0.8%.

### What is Australia's household saving ratio?

6.5% in the June quarter of 2026, according to the ABS national accounts.

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