SYDNEY Australia's economy expanded by more than expected in the second quarter, driven by exports and investment, while household consumption remained weak as decade-high interest rates worked to cool demand.

Data from the Australian Bureau of Statistics on Wednesday showed real gross domestic product (GDP) rose 0.4% in the second quarter, slightly beating forecasts of 0.3%.

Annual growth was at 2.1%, above expectations for 1.8%.

(Reporting by Stella Qiu; Editing by Jacqueline Wong)