AusBN - Australia’s economy expanded by 0.8% in the June quarter, boosted by increased domestic spending and growth in several key industries, in spite of fluctuating commodity prices.
According to latest figures from the Australian Bureau of Statistics (ABS), domestic spending increased by 1% during the June quarter, based on a 0.7% growth in household consumption, while expenditure on food, clothing and household furnishings also increased.
The manufacturing industry saw a growth of 1.8% and sectors relating to the providing of business services, including financial and insurance services, also recorded above trend growth.
However, lower coal and iron ore prices meant the exporting sector suffered a 6.0% decline, which impacted the national GDP as commodity company profits were generally more subdued during the quarter.
Chief Economist for the ABS, Bruce Hockman said: "Recent swings in coal and iron ore prices have had significant effects on the Australian economy in terms of export revenues and real incomes, though export volumes continued to grow in the June quarter.
“Dwelling construction remains at elevated levels, although new residential building approvals are on the decline."
The ABS also stated that growth for the 2016-17 financial year stood at 1.9%.