Australian economy grew by 0.4%
Australia's gross domestic product (GDP) grew by 0.4% in the September quarter 2019, following a 0.6% rise in the June quarter. The Australian economy grew 1.7% through the year.
Gross domestic product, Chain volume measures: Seasonally adjusted
Household consumption remains subdued
Household final consumption expenditure increased 0.1% in the quarter, with through the year growth softening to 1.2%. The quarterly rise in household consumption was driven by modest growth in expenditure on essential goods and services. Consumption of discretionary goods and services fell 0.3% this quarter.
Household final consumption expenditure, Chain volume measures: Seasonally adjusted
Essential and discretionary consumption expenditure, Chain volume measures: Seasonally adjusted
Fall in income tax payable drives growth in household savings ratio
Growth in household gross disposable income outpaced subdued household final consumption expenditure, leading to a sharp rise in the household saving ratio (4.8). Household gross disposable income increased 2.5%, driven by a decline in income tax payable, which was impacted by the introduction of the low and middle income tax offset.
Household saving ratio, Seasonally adjusted
Public spending drives domestic final demand
Domestic final demand contributed 0.2 percentage points to GDP growth, with government final consumption expenditure and public gross fixed capital formation both contributing to the rise.
Government final consumption expenditure rose 0.9% in the quarter and remains strong through the year at 6.0%. National non-defence consumption expenditure contributed to growth with continued spending on disability and aged care services. Public gross fixed capital formation grew 1.9% in the September quarter, with state and local public corporations and national general government the main contributors.
Domestic final demand, Chain volume measures: Seasonally adjusted - Contributions to growth
Continued strength in Healthcare drives Gross Value Added
Health Care and Social Assistance GVA rose 2.6% in the September quarter and has risen 8.3% through the year. Growth is attributed to both the public and private sectors, reflecting continued demand for disability, health and aged care services.
Health Care and Social Assistance gross value added, Chain volume measures: Seasonally adjusted
Dwelling investment continues to decline
Investment in new and used dwellings fell 2.8% in the quarter and 11.0% through the year, reflecting continued weakness in dwelling approvals. Both houses (-2.1%) and other residential dwellings (-3.7%) contributed to the decline this quarter. All states and territories recorded falls with the exception of Victoria.
New and used dwelling investment, Chain volume measures: Seasonally Adjusted
Mining drives fall in private business investment
Mining business investment fell 7.8% this quarter and 11.2% through the year, reflecting the transition of LNG projects from investment to production. Non-mining business investment rose 1.2% this quarter, driven by non-residential building and road projects.
Mining and non-mining investment, Chain volume measures: Seasonally adjusted