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DECEMBER KEY FIGURES
FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES
In the December quarter 2016, non-financial corporations and households invested $52.3b and $41.6b respectively. Non-financial corporations funded these investments through gross saving ($47.2b) and net borrowing ($4.9b). Households funded their investment through gross saving ($40.6b). The general government sector invested $14.6b, funding it through gross savings ($10.5b) and net borrowing ($18.6b).
Graph 1. Total capital formation, current prices
National investment increased $9.2b in the December quarter 2016 to $114.8b.
Private non-financial corporations Gross fixed capital formation has increased to $46.8b in December 2016 after falling from its peak in June quarter 2013 ($61.7b). Conversely, Household sector Gross fixed capital formation has increased to $41.6b after growing in March quarter 2013 ($25.6b). The growth has been driven by an increase in investment.
Graph 2. Net financial investment (Net lending (+) / net borrowing (-))
Source(s): table 4. National Financial Assets and Liabilities ($ million); Table 6. Financial Assets and Liabilities of Non-Financial Corporations ($ million); Table 14. Financial Assets and Liabilities of Financial Corporations ($ million); Table 27. Financial Assets and Liabilities of General Government ($ million); Table 33. Financial Assets and Liabilities of Households ($ million)
During December quarter 2016, national net borrowing was $3.4b with general government borrowing of $18.6b and non-financial corporations borrowing of $4.9b. By contrast, financial corporations and households lent $14.5b and $5.7b respectively to other sectors.
Net borrowing of $18.6b by general government was due to the disposal of financial assets (-$11.8b) while incurring $6.8b in liabilities. State and local general government disposed $24.9b of financial assets by reducing equities. There was also a reduction in their liabilities driven by repayments of loans. National general government acquired $13.2b in financial assets during the quarter mainly through deposits and other accounts receivable. During the quarter they issued $23.9b of bonds contributing to the increase in their liabilities.
Net borrowing of $4.9b by non-financial corporations was a result of incurring $14.8b in liabilities and acquiring $9.9b in financial assets. Non-financial corporations net incurrence of liabilities was driven by issuance of equity and bonds partially offset by a reduction in other accounts payable and loans. Non-financial corporations acquired assets through bank deposits which were partially offset by a reduction in other accounts receivable and a disposal of bonds.
Financial corporations were net lenders ($14.5b), acquiring $75.9b in financial assets while incurring $61.5b in liabilities. Financial assets were acquired by increasing loans to households and to other private non-financial corporations, purchasing long-term Commonwealth Government Securities and acquiring equities in other private non-financial corporations. These asset acquisitions were partially offset by derivative settlements. Financial corporations incurred liabilities by increasing the acceptance of deposits and increasing net equity in reserves. The increase in liabilities was partially offset by derivative settlements.
Households remained net lenders ($5.7b) in December quarter 2016. Households acquired $37.6b in financial assets through bank deposits and increases net equity in reserves of pension funds. The acquisitions of financial assets were partially offset by disposal of equities and a reduction of other accounts receivable. Households incurred liabilities through loan borrowings.
CHANGES TO THIS ISSUE
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REVISIONS IN THIS ISSUE
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CHANGES IN FUTURE ISSUES
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