Australia economy grew 0.7 percent

SYDNEY?: Australia's economy grew a solid 0.7 percent last quarter as firms added to inventories and spent more on machinery, helping offset softness in consumption and housing.

Annual growth in gross domestic product (GDP) stood at 2.7 percent, right on expectations and keeping Australia on track for its 20th straight year without a recession.

Policy makers and analysts are optimistic growth will quicken over the next couple of years as Chinese and Indian demand for resources fuels a once-in-a-century boom in trade and mining investment.