Australia’s economy experienced a 0.4 per cent expansion in the September quarter of 2025, resulting in an annual growth rate of 2.1 per cent, according to the Australian Bureau of Statistics (ABS). The latest figures indicate a resilient economic landscape bolstered by strategic investments and stable household spending.
Private investment was a key growth driver, contributing 0.5 percentage points, fuelled by expenditure on machinery and equipment to expand data centres supporting AI and cloud computing infrastructure. Housing investment also played a significant role, adding 0.2 percentage points amid increased construction activity and strong investor interest. Household spending saw a 0.5 per cent rise, predominantly in essential services such as banking, electricity, health, and superannuation, while discretionary spending experienced a slight dip of 0.2 per cent.
Public investment rebounded strongly, increasing by 3 per cent. This growth was largely attributed to investments in renewable energy, water infrastructure, telecommunications upgrades, and rail projects. The mining sector also demonstrated growth, with profits increasing by 1.2 per cent despite a reduction in production volumes. This was due to higher export prices and volumes prompting companies to reduce inventories, which detracted 0.5 percentage points from overall growth.
The household saving ratio increased to 6.4 per cent, supported by rising wages, bonus payments, and superannuation income. The ABS noted that rooftop solar generation is now factored into the National Accounts, contributing marginally to GDP while saving households over $3 billion in the 2024-25 financial year. According to Grace Kim, head of national accounts at the ABS, the data reflects “steady economic growth in line with population trends”, though GDP per capita remained flat for the quarter.
