Australia government spending climbs in Q2, adds to GDP

SYDNEY, (Reuters) – Australian government spending rose strongly in the June quarter fuelled by increased investment in public infrastructure, delivering a much-needed boost to economic growth.

Spending on operational items rose 1.3% in the June quarter from the previous quarter to an inflation-adjusted A$105.5 billion ($76.99 billion), the Australian Bureau of Statistics reported on Tuesday.

Investment in fixed assets by the government and public enterprises jumped 7.4% to A$29.2 billion. The ABS estimated total public spending would add around 0.7 percentage points to June quarter gross domestic product (GDP).