Annual economic growth in Australia remains “above trend” according to the Australian Bureau of Statistics which today released the national accounts.

The latest figures detail gross domestic product (GDP) growth of 0.4 per cent in the June quarter, and by 3.4 per cent over the 2022-23 financial year.

“This was the seventh straight rise in quarterly GDP and annual growth remained above trend, reflecting the absence of significant COVID-19 disruptions such as lock downs in 2022-23,” ABS head of national accounts Katherine Keenan said.

“Capital investment and exports of services were the main drivers of GDP growth this quarter.”

However, the figures also confirm the impact of cost of living pressures on everyday Australians, with household spending remaining subdued in the latest quarter, rising just 0.1 per cent.

“Spending on essential goods and services were the main contributors to the rise in household spending, while many discretionary categories detracted,” Keenan said.

“The exception was spending on vehicles which rose 5.8 per cent as supply bottlenecks eased during the quarter.”

The household saving to income ratio also fell for the second consecutive quarter to 3.2 per cent – its lowest level since June 2008.

“The fall in the household saving ratio was driven by higher interest payable on dwellings, income tax payable and increased spending by households due to the rising cost of living pressures,” Keenan said.

Nominal GDP – a measure of GDP in current prices without adjustment for inflation – fell by 1.2 per cent in the June quarter but grew by 9.7 per cent over the full financial year.

This follows prices growth in the previous two quarters, while the decline in export prices was driven by energy related commodities, as coal and other mineral fuels prices both fell.

The ABS said this was the largest quarterly fall in export prices since June 2009. Import price falls were led by oil-based products per the national accounts.

Improved weather and easing supply chain constraints drove trade in goods during the quarter, with net trade in goods contributing 0.5 percentage points to gross domestic product.

Global supply-chain constraints continued to ease over the quarter according to the ABS as domestic inventory behaviour normalised.

Services exports rose by 12.1 per cent, driven by travel services as international students and tourists returned to Australia.

Investment continued to grow in June too – both public and private – driven by health and transport infrastructure investment according to Keenan.

“National defence investment also contributed to growth, rising by 16.2 per cent,” Keenan said.

“The increase in private capital was driven by a 4.3 per cent rise in new machinery and equipment, led by continued investment in light and heavy vehicles and other transport equipment.

“Ownership transfer costs also grew, rising 3.9 per cent following six consecutive quarterly falls.”