SYDNEY (Reuters) -Australia’s economy picked up speed in the June quarter as consumers finally started spending after a long fallow stretch, data showed on Wednesday, taking over from government as the main driver of growth.
The Australian Bureau of Statistics reported real gross domestic product (GDP) rose 0.6% in the second quarter, topping market forecasts of a 0.5% gain. Household consumption jumped 0.9% while government spending and business investment added little to activity.
Annual growth accelerated to 1.8%, from 1.4%, the fastest pace in almost two years, but still short of the 2.5% that used to be considered “normal”. The household savings ratio eased back to 4.2%, from 5.2%, as consumers chose to spend rather than save.
(Reporting by Wayne Cole; Editing by Jamie Freed)
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