Australia government spending adds to GDP growth in Q3

Australian government spending on operational items rose 0.9% in the September quarter from the previous quarter to an inflation-adjusted A$93.55 billion ($63.48 billion), the Australian Bureau of Statistics reported on Tuesday.

SYDNEY, Dec 3 (Reuters) - Australian government spending on operational items rose 0.9% in the September quarter from the previous quarter to an inflation-adjusted A$93.55 billion ($63.48 billion), the Australian Bureau of Statistics reported on Tuesday.

Investment in assets by the government and public enterprises also rose 1.9% to A$24.13 billion.

The ABS said general government spending likely added 0.2 percentage points to gross domestic product (GDP) growth in the September quarter, while investment contributed 0.1 percentage points.

Public spending accounts for around 24% of GDP, data for which are due on Wednesday. Economic growth was forecast to rise 0.5% last quarter, according to a median of economists polled by Reuters, nudging the annual pace up to 1.7%.

($1 = 1.4736 Australian dollars)

(Reporting by Wayne Cole Editing by Shri Navaratnam)

((Wayne.Cole@thomsonreuters.com; 612 9321 8162; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))

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