ANZ said it expects Australia's gross domestic product to grow by 0.7% in the fourth quarter of 2025, according to a Tuesday report by the bank.

Across the expenditure side of the accounts, the bank expects GDP(E) to rise 0.9% quarter-on-quarter, with household consumption increasing 0.8% and public demand adding about 0.3 percentage point to growth.

Dwelling investment is expected to rise 0.5%, while total business investment is expected to fall 0.7% after a 3.2% increase in the previous quarter, ANZ said.

On the production side, GDP(P) is expected to increase 0.4% quarter-on-quarter, with mining and professional, scientific and technical services contributing to growth, while financial and insurance services, and arts and recreation services are likely to have contracted in the quarter, the bank added.

On the income measure, ANZ expects real GDP(I) to rise 0.8% quarter-on-quarter, driven by robust growth in company profits in the fourth quarter.

Slower wages and salaries growth is expected to partly offset this, with a relatively high deflator keeping real GDP(I) growth below 1% despite strong profit growth, the report said.