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1360.0 - Measuring Australia's Economy, 2003  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
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Contents >> Section 4. Domestic Consumption and Investment >> Household Final Consumption Expenditure

Household final consumption expenditure, in trend chain volume terms, grew solidly during the last 10 years. From June quarter 1992 to June quarter 2002, household final consumption expenditure grew at an average annual rate of 3.7%, increasing every quarter during that period. Household final consumption expenditure was $107b in the June quarter 2002.


SELECTED COMPONENTS OF HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Chain Volume Measures(a)

Food
Clothing
and
footwear
Health
Rent and
other dwelling
services
Total
$m
$m
$m
$m
$m

ANNUAL

1996-97
39,514
13,499
15,500
65,743
341,945
1997-98
40,692
14,038
14,740
67,764
358,426
1998-99
41,187
15,390
15,904
69,945
376,402
1999-00
41,980
16,510
16,602
72,660
392,045
2000-01
41,415
15,425
17,982
75,306
402,615
2001-02
42,768
16,640
19,838
77,743
418,164

QUARTERLY (TREND)

2000-01
December
10,289
3,824
4,384
18,759
100,140
March
10,356
3,905
4,610
18,901
101,051
June
10,438
4,007
4,784
19,047
101,934
2001-02
September
10,511
4,045
4,862
19,200
102,774
December
10,607
4,123
4,913
19,359
103,809
March
10,748
4,217
4,993
19,514
105,116
June
10,910
4,284
5,088
19,663
106,517

(a) Reference year for chain volume measures is 2000-01.

Source: Australian National Accounts: National Income, Expenditure and Product (5206.0).



Explanatory Notes

Household final consumption expenditure measures current expenditure by households and producers of private non-profit services for households, such as charities, clubs, trade unions and private schools. The items covered include expenditure on consumer durables such as cars, furniture and long-lasting household appliances; consumer semi-durables such as clothing and other appliances; single use goods such as food; and services of all kinds, for example, hairdressing and public transport.

Household final consumption expenditure makes up over half of expenditure on GDP and is the largest component of aggregate demand. Consequently, changes in household final consumption expenditure from one period to another have a significant impact on movements in GDP.

The level of household final consumption expenditure is dependent on a number of factors including: present and anticipated future levels of income, expenditure and saving habits, relative price levels and the rate of inflation.

Economic policy makers may attempt to influence the level of household final consumption expenditure to either dampen or stimulate the economy by altering interest rates or through taxation or wages policy.


Further Reading

Australian National Accounts: Concepts, Sources and Methods (5216.0)
Contains a detailed explanation of the system of Australian national accounts outlining major concepts and definitions.

Australian National Accounts: National Income, Expenditure and Product (5206.0)
Contains quarterly data for household final consumption expenditure.

Australian System of National Accounts (5204.0)
Contains annual data for household final consumption expenditure.

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