Australian GDP rose by 1% in the first quarter, from an upwardly revised 0.5% in the December quarter, while annual growth jumped to 3.1% from the December quarter's 2.4%.

The last time the economy ran that fast was in the second quarter of 2016.

Wednesday's result just beat market forecasts for growth of 0.9% in the quarter and 2.8% on-year, pushing the AUD/USD to near a six-week high.

Booming exports, business investment and government spending drove first quarter growth although the outlook was dimmed by cautious household spending.

Household consumption contributed a meagre 0.2 percentage point to growth in the quarter.

Real net national disposable income grew 2.5% over the year, but the increase per person was under 1%.

Australian consumers are saddled with a mountain of debt at a time when wages are rising at the slowest pace on record and the unemployment rate is still high at around 5.5%.

House prices, a major element of consumer confidence, have fallen for successive months since late last year as banks tightened their lending standards amid damaging revelations of some of their business practices.

Interbank interest rate futures are not fully priced for a hike until September 2019.

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