Australian economy tipped for 0.7% rise
Australians splashing some cash are expected to have helped the economy grow in the June quarter.
Economists have tipped the national accounts will show 0.7 per cent in growth in the quarter when they are released on Wednesday.
The rise would mean the economy had expanded by 2.8 per cent compared with a year before.
A rebound in consumer spending and lifts in house construction and public spending are expected to have contributed to such growth, AMP chief economist Shane Oliver said.
Factors believed to have kept it at bay include weak business investment, just a small contribution from net exports and a slight detraction from inventories, Dr Oliver said.
This month's rise would follow a 1.0 per cent growth in the three months to March, which marked the strongest lift in almost two years.
Westpac senior economist Andrew Hanlan said a slowdown was likely on the back of that result, which benefited from driven by strong inventories and net exports.
"A repeat of this appears unlikely," he said.
The Reserve Bank of Australia expects a 0.9 per cent increase in the quarter, with average growth across the financial year of 3.25 per cent.
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