Australia's gross domestic product (GDP) grew 0.4% in the June quarter on a seasonally adjusted, chain volume basis, after a 0.3% growth in the March quarter, according to data released on Wednesday by the Australian Bureau of Statistics.

The GDP rose 2.1% compared with a year earlier.

"Economic growth remained subdued in the June quarter as households continued to behave cautiously," said Grace Kim, the bureau's head of national accounts.

The modest growth reflected pockets of strong private demand, partly met by higher imports, alongside stronger mining exports supported in part by drawdowns in mining inventories.

GDP per capita was flat in the June quarter, following a 0.1% decrease in the March quarter.

Household consumption rose 0.4% in the June quarter, despite subdued spending amid higher fuel prices and reduced domestic and international travel.

Private business investment fell 0.5% in the June quarter, despite remaining over 10% higher than a year earlier, as data center fit-out spending eased from its March-quarter surge.

Australia's imports of goods rose 2.4% while exports increased 0.8% in the quarter, with net trade contributing 0.1 percentage points to GDP growth.

Employee compensation rose 1.5% amid higher wages, bonuses and redundancy payments.

The household saving-to-income ratio edged up to 6.5% from 6.4% in the March quarter, as growth in gross disposable income outpaced the increase in nominal household spending.