Australia's economy slowed in the second quarter as exports stayed sluggish but the pace of growth still beat expectations, data showed on Wednesday.
Gross domestic product (GDP) rose 0.5 percent in the June quarter from the quarter before, a tad above Reuters' forecast for a 0.4 percent expansion and following a 1.1 percent gain in the first three months of the year.
On an annual basis, GDP climbed 3.1 percent, beating expectations of a 3 percent increase and after rising 2.9 percent in the first quarter.
Australian shares rose 0.2 percent to a two-week high on the news while the Australian dollar ticked up 0.1 percent against the greenback, rebounding from Tuesday's eight-day low.
A breakdown of the data showed net exports were the main drag on the economy. Exports contracted by 0.8 percent on quarter, while imports rose by 3.7 percent. Private consumption growth picked up slightly and while business investment growth strengthened, investment in new dwellings expanded at a slower rate.
"The year-on-year number does look good at face value," said David Bassanese, chief economist at BetaShares. "I would point out though there's a pick up in exports late last year - that's unlikely to be sustained going forward in terms of growth rate."