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FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES
During September quarter 2015, non-financial corporations and households invested $52.9b and $38.5b respectively in capital formation. Non-financial corporations funded these investments mainly through net borrowing ($34.3b) and gross saving ($24.8b). Households funded their investment through gross savings ($58.7b) and remained a net lender ($28.9b) to other sectors. The general government sector invested $10.3b in capital formation funding it mainly through net borrowing of $16.2b.
Graph 1. Total capital formation, current prices
In original terms, national capital formation investment decreased $5.1b from the June quarter 2015 estimate to $104.4b in September quarter 2015. The decrease was driven by an $8.6b fall in gross fixed capital formation, which was slightly offset by a $3.4b increase in change of inventories.
Private non-financial corporations gross fixed capital formation has fallen since peaking in June quarter 2013 ($59.2b), this has been driven by decreased non-dwelling construction investment. Conversely, household sector gross fixed capital formation has continued to grow since March quarter 2014 ($30.0b), this has been driven by increased investment in dwellings.
Graph 2. Net financial investment (Net lending (+) / net borrowing (-))
Source(s): Table 4. National Financial Assets and Liabilities ($ 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 September quarter 2015, national net borrowing was $18.9b, driven by non-financial corporations borrowing of $34.3b and general government borrowing of $16.2b. By contrast, the household and financial corporations sectors lent $28.9b and $2.8b to other sectors respectively.
Net borrowing of $34.3b by non-financial corporations was a result of incurring $55.3b in liabilities and acquiring $20.9b in financial assets. Private non-financial corporations incurred $54.3b in liabilities during the quarter driving increases in total liabilities of the non-financial corporation sector. The increase in liabilities of the private non-financial corporations sector was driven by issuance of equity of $30.9b coupled with loan borrowings of $23.9b. This was partially offset by maturities of long term debt securities of $5.4b. The private non-financial corporations sector drove the increase in financial assets with net acquisition of $18.5b during the quarter accruing $9.1b in other accounts receivable and acquiring $6.7b in equities.
Net borrowing of $16.2b by general government was a result of incurring $32.3b in liabilities while acquiring $16.1b in financial assets. The general government incurred liabilities primarily through issuance of Commonwealth government bonds ($24.0b). A net transaction of $2.6b in unfunded superannuation also contributed to general government liabilities. The general government acquired financial assets through other accounts receivable ($8.0b) and loans and placements ($5.6b).
Households continued to be net lenders ($28.9b) in September quarter 2015 for the 28th consecutive quarter since September quarter 2008, when they were a net borrower. Households acquired $51.5b in financial assets through increases in bank deposits ($34.7b) and net equity in reserves ($14.2b) while incurring liabilities through borrowing long term loans ($26.0b).
Financial corporations remained net lenders ($2.8b) by acquiring $78.0b in financial assets while incurring $75.2b in liabilities. The financial corporations sector acquired financial assets through loans and placements ($65.9b) driven by lending to households ($25.1), other private non-financial corporations ($19.3b) and rest of world ($15.1b). Financial corporations also acquired bonds issued by national general government ($13.6b) and securitisers ($10.3b) as well as equities issued by other private non-financial corporations ($14.5b). Financial corporations incurred liabilities through taking deposits ($48.9b), increasing net equity in reserves ($13.8b) and borrowing through the short term loans market ($8.4b).
CHANGES TO THIS ISSUE
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REVISIONS IN THIS ISSUE
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CHANGES IN FUTURE ISSUES
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