Australia's GDP grew 0.8% on quarter in Q4 after expanding 0.6% in Q3 and topped consensus of +0.7%, lifted by increased household spending and lower savings.
On year, GDP +2.8% vs +2.3% and +2.5%.
The message from the data is that the "rebalancing act" away from mining "is under way," says HSBC economist Paul Bloxham.
"The Australian economy hasn't fallen in a heap since mining investment peaked," says Moody's Analytics economist Katrina Ell. "Further gains are likely as the monetary stimulus continues to filter through."
The S&P/ASX 200 is +0.85%, while the Australian dollar is +0.2% at $0.8973. (PR)