Australian gross domestic product (GDP) rose 0.8 per cent in the December quarter 2025 and 2.6 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: 'There was broad based economic growth in the quarter, with rises observed in a large majority of industries. Public and private demand each contributed 0.3 percentage points to GDP growth.'
'GDP per capita increased for the fourth consecutive quarter and is now 0.9 per cent higher than a year ago, the highest through the year growth since December quarter 2022.'
| Quarterly growth (%) | Through the year growth (%) | |
|---|---|---|
| Dec-23 | -0.1 | 1.3 |
| Mar-24 | 0.4 | 1.1 |
| Jun-24 | 0.2 | 0.9 |
| Sep-24 | 0.3 | 0.8 |
| Dec-24 | 0.3 | 1.2 |
| Mar-25 | 0.4 | 1.3 |
| Jun-25 | 0.8 | 1.9 |
| Sep-25 | 0.5 | 2.1 |
| Dec-25 | 0.8 | 2.6 |
Household spending rose 0.3 per cent in the quarter and 2.4 per cent through the year.
Discretionary spending rose 0.4 per cent reflecting the expansion of Black Friday sales and strong attendance at sporting and concert events.
Spending on essential goods and services grew 0.2 per cent in the quarter. Essential services grew 0.4 per cent but was offset by lower spending on essential goods which fell by 0.5 per cent. Expenditure on electricity, gas and other fuels fell 9.5 per cent, driven by decreased electricity usage (detracting 3.3 percentage points) and reduced out of pocket expenditure due to Government rebates (detracting 6.2 percentage points). Electricity rebates are recorded as government expenditure. Household spending excluding electricity rose 0.4 per cent.
State and local government expenditure rose 1.0 per cent with increased spending on electricity rebates and employee expenses across health, education and police. Commonwealth expenditure grew 0.8 per cent in the December quarter.
There were increased levels of production in 17 out of 19 industries. Mining production increased 2.6 per cent, contributing 0.3 percentage points to GDP growth as mines resumed work following scheduled maintenance in the previous quarter. Agriculture production rose 2.5 per cent, reflecting favourable growing conditions and international demand for Australian meat.
Increased mining activity matched with higher export prices for mineral ores drove a rise in mining profits, which increased 5.7 per cent in the quarter. Profits for all corporations increased 2.2 per cent in the December quarter, the highest quarterly increase since March quarter 2023.
Private investment increased for the fifth consecutive quarter, growing by 0.7 per cent and contributing 0.1 percentage points to GDP growth. This rise follows a 3.2 per cent increase in the previous quarter. Investment across most asset classes maintained high levels.
Machinery and equipment (M&E) fell 2.0 per cent following a 7.8 per cent increase in the September quarter. 'Investment in data centres and aircrafts was maintained at high levels. Investment in M&E was 4.0 per cent higher through the year.' Ms Kim said.
Housing investment contributed 0.1 percentage points to GDP growth, with a rise in construction of apartments and high real estate turnover.
Public investment grew by 0.9 per cent, maintaining its strength following a 3.0 per cent rise in the September quarter.
State and local government investment grew 1.4 per cent, driven by transport infrastructure, Commonwealth government investment grew 3.3 per cent driven by higher investment in a range of defence assets.
The household saving to income ratio increased to 6.9 per cent, up from 6.1 per cent in the September quarter. The ratio is now at its highest level since the September quarter 2022. Household disposable income rose 1.8 per cent, significantly higher than the nominal increase in household spending of 1.1 per cent.
Compensation of employees rose 1.4 per cent to be 6.5 per cent higher than a year ago. This rise combined with an increase in non-life insurance claims, and higher incomes from unincorporated enterprises drove the overall rise in household gross disposable income.
