5232.0 - Australian National Accounts: Finance and Wealth, Mar 2018 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 28/06/2018   
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MARCH KEY FIGURES

FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES

Non-financial corporations
Financial corporations
General government
Household
Total National
Rest of world
$b
$b
$b
$b
$b
$b

Financing resources
Net saving (a)
-17.1
22.1
5.5
5.7
16.2
8.8
plus Consumption of fixed capital
39.0
2.9
9.6
29.4
80.8
-
Gross saving
21.9
25.0
15.1
35.1
97.0
8.8
plus Net capital transfers
0.3
-
-1.0
0.5
-0.1
0.1
less Statistical discrepancy (b)
-
-
-
-
7.2
-
Total financing resources
22.2
25.0
14.1
35.6
89.7
9.0
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
45.4
2.8
14.2
37.9
100.2
-
plus Change in inventories
-1.6
-
0.1
-0.1
-1.6
-
plus Net acquisition of non-produced non-financial assets
0.0
-
-0.1
0.1
-0.1
-
Total capital formation
43.8
2.8
14.1
37.9
98.5
-
plus Financial investment
Acquisition of financial assets
9.4
68.6
13.7
47.3
24.6
32.0
less Incurrence of liabilities
41.8
66.9
12.0
25.6
32.0
24.6
Net financial investment (Net lending (+) / net borrowing (-))
-32.4
1.8
1.6
21.7
-7.4
7.4
less Net errors and omissions
-10.9
-20.4
1.6
23.9
1.5
-1.5
Total investment
22.2
25.0
14.1
35.6
89.7
8.9

- nil or rounded to zero (including null cells)
(a) Net saving for the Rest of world is the balance on the external income account.
(b) The statistical discrepancy is not able to be distributed amongst the sectors.


In the March quarter 2018, non-financial corporations funded their investments of $43.8b through both gross saving of $22.2b; and net borrowing of $21.6b, funded through both loan borrowing from banks and rest of the world, and share issuance mainly held by rest of the world. Overall the Australian economy borrowed $7.4b during the quarter, driven by the borrowings of the private non-financial sector.



Graph 1. Total capital formation, current prices

Graph 1 shows  Total capital formation, current prices



National investment decreased $19.4b in March quarter 2018 to $98.5b. The fall follows national investment reaching its highest level of $118.0b in the December quarter 2017. National investment previously peaked in the December quarter 2012 at $116.0bn, before falling steadily due to a decline in mining investment. Growth in recent quarters was driven by both the private and public sector.

Private non-financial corporations investment was $38.1b in the March quarter 2018. It has recovered from a low of $36.7b in March quarter 2017, following a steady decline since reaching its peak in June quarter 2013. Household investment was $37.9b in March quarter 2018 and has grown steadily since the $24.6b recorded in March quarter 2012.



Graph 2. Net financial investment (Net lending (+) / net borrowing (-))

Graph 2 shows Net financial investment (Net lending (+) / net borrowing (-))



During March quarter 2018, national net borrowing was $7.4b, driven by the borrowings of the private non-financial sector.

Net borrowing of $32.4b by non-financial corporations was a result of acquiring $9.4b of financial assets and incurring $41.8b in liabilities. Financial assets acquired were deposits, equities, and bonds. Non-financial corporations incurred liabilities through long term loan borrowing.

Net lending of $1.8b by financial corporations was a result of acquiring $68.6b of financial assets and incurring $66.9b in liabilities. The acquisition of financial assets by financial corporations was driven by issuance of loans and acquisition of equities, which were partially offset by derivative settlements. Financial corporations' net incurrence of liabilities was driven by an increase in insurance technical reserves and bond issuance. These were partially offset by settlement in derivative liabilities.

Net lending of $1.6b by general government was a result of acquiring $13.7b of financial assets and incurring $12.0b in liabilities. The financial assets primarily acquired by general government were account receivables, loans and placements, and equities. These were partially offset by divestment in debt securities.

Households were net lenders in March quarter 2018. Households acquired $35.9b in net equity in reserves, of which unfunded super contributed $3.1b. Households acquired $9.0b in deposits assets and incurred liabilities through $24.3b in loan borrowings.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)Release Date
June 201827 September 2018
September 201813 December 2018
December 201828 March 2019
March 2019 27 June 2019

CHANGES TO THIS ISSUE

Following ongoing quality assurance work a number of data quality issues have been identified with Table 52. Nominal Value of Short Term Loans and Placements Market ($ million) and Table 53. Nominal Value of Long Term Loans and Placements Market ($ million). These tables will be unavailable until further notice. However, Table 45. The Short Term Loans and Placements Market ($ million) and Table 46. The Long Term Loans and Placements Market ($ million), which are on a market value basis, are available.


REVISIONS IN THIS ISSUE

There have been revisions to previously published aggregates due to:
  • Quality assurance reviews of compilation methodology affecting the published aggregates after March quarter 2016, in addition to amendments to data collected in the ABS Survey of Financial Information, ABS Survey of International Investment and to data derived from Australian Prudential Regulation Authority (APRA) administrative data sets.
  • Revisions to the sectoral capital accounts are due to more up-to-date data being incorporated and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

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