Hockey to embrace solid growth outcome from September quarter

The economy looks to have got off to a positive start this financial year, a bonus for Joe Hockey as he pens his mid-year budget review.

The national accounts for the September quarter are expected to show annual economic growth remaining above three per cent, a positive for future employment growth.

Consumer spending and exports are expected to have fuelled growth in the quarter, although wages and profits are expected to remain sluggish, a hit to government revenues.

The treasurer has been waiting for the national accounts to form a base for his budget review forecasts, an update he should release in the next couple of weeks.

Economists expect larger deficits over the four-year budget estimates than predicted in the May budget.