Australian gross domestic product (GDP) rose 0.3 per cent in the March quarter 2026 and 2.5 per cent compared to a year ago (seasonally adjusted, chain volume measure), according to figures released today by the Australian Bureau of Statistics (ABS).
Grace Kim, ABS head of National Accounts, said: "Economic growth slowed in the March quarter, with modest household and public sector expenditure as well as cyclone disruptions to mining and export activities."
| Quarterly growth (%) | Through the year growth (%) | |
|---|---|---|
| Mar-24 | 0.2 | 1.1 |
| Jun-24 | 0.3 | 0.9 |
| Sep-24 | 0.3 | 0.8 |
| Dec-24 | 0.4 | 1.2 |
| Mar-25 | 0.3 | 1.3 |
| Jun-25 | 1.0 | 2.0 |
| Sep-25 | 0.4 | 2.1 |
| Dec-25 | 0.9 | 2.5 |
| Mar-26 | 0.3 | 2.5 |
Household spending rose 0.5 per cent in the March quarter. This growth includes elevated spending on electricity, gas and other fuels (up 11.7 per cent) as government rebates ceased, raising out‑of‑pocket expenditure for households.
Household spending on essential goods and services increased by 0.8 per cent, while discretionary spending rose by 0.1 per cent. "Rising interest rates and significantly higher fuel costs in the March month likely created an environment for more cautious consumer behaviour. This resulted in reduced spending across a range of household expenditure categories," Ms Kim added. Household spending results in this release predates the halving of the fuel excise on 1 April.
Government final consumption expenditure fell 0.2 per cent, the lowest quarterly growth since September quarter 2022. Commonwealth spending slowed from recent high levels of defence expenditure, while state and local government spending fell 0.8 per cent following the ending of electricity rebate payments.
Weather disruptions impacted export dependent industries. Mining production fell 1.5 per cent, while transport, postal and warehousing activity declined 1.3 per cent.
Exports fell 1.1 per cent, the largest quarterly decline in two years, driven by falls in coal (down 6.8 per cent) and mineral ores (down 1.3 per cent). Imports of capital goods rose 6.3 percent, as total imports grew 2.1 per cent. Overall, net trade detracted 0.8 percentage points from GDP growth.
Private business investment rose 6.0 per cent, driven by a 16.3 per cent increase in machinery and equipment (M&E). "M&E investment recorded the largest rise in 30 years with the expansion of data centres in New South Wales and Victoria during the quarter. The contribution of investment to GDP growth was moderated as most of this equipment was imported," Ms Kim added.
The household saving to income ratio fell to 6.2 per cent, down from 7.0 per cent in the December quarter. This fall reflects the rise in household spending in nominal terms which outpaced the rise in household disposable income. Household disposable income was driven by a 1.2 per cent rise in compensation of employees while the increase in income tax and interest payments detracted from growth.
While illicit tobacco is not reflected in the official National Accounts data, the level of public interest led the ABS to develop experimental estimates of household consumption of illicit tobacco and nicotine products and its impact on economic statistics. This release includes an analytical article containing these estimates and their theoretical impact on published economic statistics. Grace Kim said, "Experimental estimates based on wastewater analysis indicate that the share of tobacco and nicotine products consumed from illicit sources is substantial and growing although it does not have a material impact on the level or growth of household consumption."
