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Contrary to fears of a recession now underway, the economy grew strongly in the June quarter, today's national accounts figures from the Australian Bureau of Statistics show.

The economy grew 0.7% in seasonally adjusted terms, fuelled by continuing household spending and public sector investment in an outcome mainly of historical interest given the devastation wrought in the current quarter by the New South Wales outbreak.

The ABS says private demand contributed 1.0 points to the result off the back of a 1.1% increase in household spending, particularly on services.