Key insights
- Australian government spending was flat in Q1, contributing nothing to GDP growth. Operational spending declined, while investment in fixed assets saw a modest rise. This data point has minimal direct impact on US equity markets, though the article also mentions AI's influence on stock performance, highlighting specific AI-related stocks.
SYDNEY, June 2 (Reuters) - Australian government spending was flat in the first quarter, data showed on Tuesday, offering no impetus to economic growth early in the year after a run of strong outcomes.
Spending on operational items fell 0.2% in the March quarter from the previous quarter to an inflation-adjusted A$159.3 billion ($114.09 billion), the Australian Bureau of Statistics reported.
Total investment in fixed assets by the government and public enterprises rose 0.9% quarter-on-quarter to A$38.9 billion. In all, the ABS estimated total public spending added nothing to first quarter gross domestic product.
($1 = 1.3963 Australian dollars)
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