Australia’s economy expanded 0.4% quarter on quarter in the second quarter of 2026, exceeding the 0.3% market estimate and accelerating from 0.3% growth in the first quarter, which was the slowest increase in a year. Activity was supported by parts of private demand and stronger mining exports, while higher imports met some demand and mining exports were partly enabled by inventory drawdowns. Overall business inventories fell 0.2% quarter on quarter, reversing a revised 0.7% increase in the first quarter.