Australia's economy bounced back into positive growth in the June quarter, figures released today show.

The National Accounts figures show the Australian economy grew by 1.2 per cent in the June quarter.

The figure follows a 1.2 per cent fall in the March quarter. Economists had been expecting a 1 per cent rise.

The Bureau of Statistics figures put the annual rate of economic growth at 1.4 per cent.

The figures also show that the decline in the March quarter was not as bad as thought.

Reserve Bank governor Glenn Stevens says interest rates are now likely to remain on hold for a considerable time.

He told a meeting in Perth the future is uncertain although inflation looks set to continue to rise.

Mr Stevens says the outlook for the non-resources economy is weaker than it looked a few months ago.

He says it is also unclear what impact global financial problems will have on the Australian economy, or the future of interest rates.

Sorry, this audio has expired Economy grows faster than expected driven by household spending ( Sue Lannin )

The ABS says one of the major reasons for the pick-up in growth is from a rise in business inventories and household spending.

"There's pretty strong demand for energy, rents going up, also some strong contributions from recreational activities," JP Morgan economist Ben Jarman said.

But Australia's trade performance was a drag on growth because the Queensland floods are still reducing the volume of exports, even though the numbers showed Australia was receiving record prices for resources.

Federal Treasurer Wayne Swan says the result demonstrates the strength of the Australian economy.

"Today's figures send a really powerful message that even the biggest natural disasters in our history and the worst global downturn in 50 years can't throw us off course," he said.

Opposition treasury spokesman Joe Hockey has welcomed the news and says the Government must keep its promise to deliver a surplus in 2013.

"There can be no more excuses from the Gillard Government, no more excuses about not delivering a surplus, starting to pay down government debt, and no more excuses for their own incompetence," he said.