From smallcaps.com.au: The Australian economy showed signs of recovery, with a 0.6% expansion in the December quarter, raising annual growth to 1.3%, surpassing the Reserve Bank’s expectations.

Households are beginning to spend again, reflected in a 0.4% increase in retail spending, and there is a slight rise in household savings as tax cuts start to take effect.

Despite these positive developments, external factors such as ongoing tariff wars pose challenges for the government’s economic outlook as it approaches the federal election.