Australia's economy expands 0.9% in September quarter, 2.5% on-year

Australia's economy grew 0.9 percent in the September quarter for an annual rate of 2.5 percent, official data showed Wednesday, with Treasurer Scott Morrison hailing progress in shifting from the resources boom to broader-based growth.

The third-quarter numbers were slightly above analyst expectations and an improvement on the previous quarter's sluggish growth, which was revised to 0.3 percent by the Australian Bureau of Statistics.

"There are positive signs of a strengthening economy and signs that our economy is heading in the right direction," Morrison said.

Australia is exiting an unprecedented mining investment boom, and the treasurer said the economy was evolving to meet the new conditions.

"The transition is underway in our economy," he said. "The next phase of Australia's growth transition will be for businesses in the non-resources sector of the economy to increase their investment."

The data showed the largest contribution to economic growth in the quarter was from exports of goods and services, concentrated in mining commodities, but household consumption was also up.

Analysts had expected a 0.8 percent rise for the quarter and 2.4 percent in the year to September.

The latest numbers come after the Reserve Bank of Australia on Tuesday left interest rates on hold at the historic low of 2.0 percent for a seventh month in a row.

"Let's not overplay the significance, but the economy is growing," governor Glenn Stevens said Wednesday after the figures were released.

"The outlook for continued moderate growth -- you would still say that's the outlook based on this incremental bit of additional information."