ELECTRIC JOLT FOR GDP; US DEFENCE PUSH

Electric vehicles push up household spending in GDP growth

Australia’s economy grew by 0.4 per cent seasonally adjusted in the June quarter and by 2.1 per cent annually, according to the latest gross domestic product (GDP) figures. The Australian Bureau of Statistics (ABS) attributed most of the quarterly growth to a 0.4 per cent lift in household spending, boosted by electric vehicle sales. Exports outpaced imports over the quarter, led by increased demand for coal, while private investment remained flat. In population terms, GDP per capita rose by just 0.7 per cent annually. Among the states and territories, state final demand over the quarter fell by 0.3 per cent in Victoria, was flat in NSW and South Australia, and rose by 1.1 per cent in Queensland and by 1.4 per cent in the Northern Territory.

EVs overtaking fuel-driven car sales, says Bowen

Backing up the GDP figures on spending trends, monthly electric vehicle sales have overtaken fuel-driven car sales for the first time in Australia, according to Climate Change and Energy Minister Chris Bowen. The Minister said new vehicle sales figures showed more than 27,000 battery electric vehicle sales in August, or almost 25 per cent of all new vehicle sales, ahead of 25,824 petrol cars sold. Mr Bowen said electric vehicle sales increased by 171 per cent on sales for August last year. Battery electric, plug-in hybrid and conventional vehicles together accounted for more than half of all new vehicle sales, he said.

US maintains stand on increased defence spending

US Secretary of War Pete Hegseth has used a meeting with Deputy Prime Minister Richard Marles in Washington to remind Australia of the need to lift defence spending. A Pentagon readout of the meeting said that Mr Hegseth had emphasised the need for “capable allies to contribute to the collective defence and invest in their own sovereign security.” Both leaders also agreed to accelerate force posture initiatives at Australian bases, bolster cooperation in combined logistics, and build greater interoperability through joint exercises. In a post-meeting interview, Mr Marles said Australia’s defence spending, at 2.8 per cent of GDP, was ahead of that of US allies Britain, France, Germany, Italy and Spain, and of almost every country in the Indo-Pacific.

ABARES forecasts five per cent fall in farm output

Farm production in Australia is forecast to fall by five per cent to under $100 billion in 2026-27, driven by lower livestock production and drier conditions in northern NSW and Queensland. The latest Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) quarterly commodities report forecast that livestock production would fall by three per cent and crop production by six per cent annually. ABARES said the Middle East conflict had contributed to fuel and fertiliser disruptions that would impact crop production, but wetter conditions in south-east Australia would lift crop yields, amid higher global crop prices. Agricultural export value was predicted to fall by five per cent to $76.3 billion, the report said.

Cereals, LNG help to prop up trade balance

Meanwhile, an increase in cereal and liquefied natural gas (LNG) exports helped to keep Australia’s international goods trade in the black in July, with a fall in the seasonally adjusted monthly balance of trade dipping below $2 billion. Cereals and cereal preparations exports were up by 19 per cent over the month, and LNG exports rose 8.5 per cent, against falls in export returns of coal and iron ore, according to the ABS. Goods exports fell 3.3 per cent and imports by 2.5 per cent, with a monthly fall of more than 21 per cent in crude petroleum.

King hopeful on future access to NT gas supply

Resources Minister Madeleine King says the Federal Government’s national gas reservation policy is stimulating investment in national gas supply. Speaking at the opening of the Beetaloo gas project in the Northern Territory, Ms King said the reservation plan was driving interest in pipeline infrastructure to transport gas around the nation. That would include a pipeline to potentially move gas to New South Wales and Victoria, but Ms King said it would likely be private funding, not Federal funding, that would finance a pipeline.