Australia’s economic growth continues, rising by 2.5% in 2025 and up 0.8% in the December quarter.

Australian Bureau of Statistics data shows that housing investment contributed 0.1 percentage points to GDP growth, with a rise in the construction of apartments and high real estate turnover.

ABS head of national accounts Grace Kim says there was broad-based economic growth in the last quarter of 2025, with increases in a large majority of industries.

She says household spending rose 0.3% in the quarter, discretionary spending was up 0.4%, and spending on essential goods fell by 0.5%.

It also shows household savings are up over the quarter, and household disposable income rose 1.8% during the same period.

According to Westpac economists, the data reinforces the view that the economy is now in the upswing phase of the cycle.

It says dwelling investment growth was 0.6% in the quarter, new dwelling construction rose 1.4%, and renovation spending dropped by 0.2%.

Westpac predicts a “healthy pipeline of projects” will support future housing construction activity.