9 facts about the economy from the March quarter

Released
11/06/2025

The Australian Economy - March quarter 2025

1. Extreme weather events reduced domestic final demand and exports

Flooding and cyclones in northern Western Australia and Queensland caused the largest impacts in the mining and shipping industries and tourism.

2. Biggest fall in public spending since September 2017

Public spending fell by $823 million in the March quarter 2025. Public project completions and delays caused drops in government investment in energy, telecommunications, road and rail.

3. GDP per person fell 0.2 per cent

This followed a rise of 0.1 per cent in the December quarter 2024. GDP per person declined to the lowest level since the September quarter 2021. 

4. Lowest underlying inflation since December 2021

The Consumer Price Index (CPI) trimmed mean measure of underlying household inflation dropped to 2.9 per cent annually. This was down from 3.3 per cent in the December quarter 2024. 

5. Lowest annual Services inflation since June 2022

Annual Services inflation dropped to 3.7 per cent, while annual Goods inflation was slightly higher at 1.3 per cent. The CPI saw inflation rise 2.4 per cent annually in the March quarter 2025, the same as the December quarter 2024. 

6. Public sector led wages growth

The Wage Price Index (WPI) rose 3.4 per cent annually in the March quarter 2025. For the first time since September 2020, jobs covered by enterprise agreements made up more than half of the wage growth for the quarter. This was boosted by the new state-based public sector enterprise agreements.

7. Employment grew 2.2 per cent annually

High participation in the labour market and job vacancies above pre-pandemic levels kept unemployment low. 

8. Highest Non-monetary gold exports since September 2019

Non-monetary gold exports rose by $2.1 billion, led by exports to the USA. 

9. Balance on goods and services fell by 3.1 per cent

Weather impacts on coal and other mineral fuel mining and exports led the fall in the balance of goods and services. Rock lobsters drove growth in rural goods exports as trade with China resumed in the March quarter 2025.

Media Notes
Back to top of the page