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Australia's economy soars in strong start to 2018

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AFP Sydney
Last Updated : Jun 06 2018 | 10:30 AM IST

Australia's economy recorded a strong start to the year as exports and business inventories rose, official data showed today, but analysts warned soft consumer spending would keep a rise in interest rates at bay.

The 1.0 per cent growth in the first three months of 2018 was a sharp rise from the revised 0.5 per cent in the previous quarter, and took the annual rate to 3.1 per cent.

The expansion was the strongest since the June quarter of last year, and above central bank and analysts' expectations.

The new figures sent the Australian dollar jumping a quarter of a cent to 75.56 US cents.

"The Australian economy... is once again back up above the long-running average (of about 3.0 per cent) again," Treasurer Scott Morrison told reporters in Canberra.

"Australia is... leading the advanced economies of the world, bettering the average growth in the OECD, and, of course, all of the G7 nations once again."

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First Published: Jun 06 2018 | 10:30 AM IST

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