Results published by the Australian Bureau of Statistics (ABS) shows the Australian economy is growing faster than expected, notching up a 1 per cent growth rate in the September quarter.


The stronger than expected September growth figure comes after a revised increase of the June quarter, which showed a 1.4 per cent increase.


The September quarter growth was driven by a 1.5 per cent contribution to growth from capital expenditure on non-dwelling construction, a 0.4 per cent contribution from final consumption expenditure, and 0.4 per centcontribution from capital expenditure on machinery and equipment. The increases were partially offset by a -0.8 percentage points contribution from changes in inventories, and -0.6 per cent contribution from net exports.


Despite prevailing pessimism from the sector’s major bodies, construction proved to be the stellar performer of the quarter, contributing nearly a half of the economic growth, accounting for 0.4 per cent. Mining posted a strong performance, accounting for 0.3 per cent.


On the back of this GDP growth and a 2.7 per cent increase in the Terms of trade, Real gross domestic income grew 1.6 per cent in seasonally adjusted terms for the quarter.


“Today's National Accounts showing the Australian economy grew strongly in the September quarter are an exceptional result at a time of heightened global instability, turmoil in Europe and slowing global growth,” Treasurer Wayne Swan said.


The positive growth results come after a strong week for the Australian economy, with the OECD backing the country’s economic fundamentals. Ratings agency Fitch also increased the country’s rating to AAA, marking the first time Australia has held the top rating from all three of the major credit rating agencies.


The ABS data can be found here