|Page tools: Print Page Print All|
FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES
During June quarter 2015, non-financial corporations and households invested $54.2b and $35.2b respectively in capital formation. Non-financial corporations funded these investments mainly through gross saving ($42.3b) and net borrowing ($18.8b). Households funded their investment through gross savings ($37.2b) and remained a net lender ($2.2b) to other sectors. The general government sector invested $16.9b in capital formation funding it mainly through gross savings of $8.9b.
Graph 1. Total capital formation, current prices
In original terms, national capital formation investment increased $12.3b from the March quarter 2015 estimate to reach a total of $108.9b in June quarter 2015. The increase was driven by a $14.6b rise in gross fixed capital formation, which was slightly offset by a $2.3b decrease in change of inventories.
Private non-financial corporations gross fixed capital formation has fallen since peaking in June quarter 2013 ($59.8b), this has been driven by decreased non-dwelling construction investment. Conversely, household sector gross fixed capital formation has continued to grow since March quarter 2013 ($26.7b), this has been driven by increased investment in dwellings.
Graph 2. Net financial investment (Net lending (+) / net borrowing (-))
Source(s): Table 4. National Financial Assets and Liabilities ($ 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 June quarter 2015, national net borrowing was $15.7b, driven mainly by non-financial corporations borrowing of $18.8b. By contrast, the financial corporations and household sectors lent $2.3b and $2.2b to other sectors respectively.
Net borrowing of $18.8b by non-financial corporations was a result of incurring $24.7b in liabilities and acquiring $5.9b in financial assets. Private non-financial corporations incurred $23.4b 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 $21.4b coupled with bond issuances of $18.4b. This was partially offset by loan repayments of $11.4b. The private non-financial corporations sector drove the increase in financial assets with net acquisition of $6.7b during the quarter. This activity was predominate in the unlisted equities market with private non-financial corporations acquiring a net $8.4b in shares and other equity.
Net borrowing of $1.4b by general government was a result of incurring $3.9b in liabilities while acquiring $2.5b in financial assets. The general government incurred liabilities through issuance of Commonwealth government bonds ($6.8b) offset by loan repayments by the state and local general government (-$4.0b). A net transaction of $2.5b in unfunded superannuation also contributed to general government liabilities. The general government acquired financial assets through placements made by the state and local general government ($6.7b) which was partially offset by deposit withdrawals by the state and local general government (-$4.6b).
Net lending of $2.3b by the financial corporations sector was a result of acquiring $27.7b in financial assets while incurring $25.4b in liabilities. The financial corporations sector acquired financial assets through loans ($65.7b) which was partially offset by derivative settlements of -$41.6b. Financial liabilities were incurred through an increase in net equity in reserves ($30.5b), acceptances of deposits ($11.7b) and accounts payable ($9.4b), this was offset by derivative settlements of -$37.8b.
Net lending of $2.2b by households was a result of acquiring $46.0b in financial assets while incurring $43.8b in liabilities. Financial assets were acquired through increases in net equity in reserves ($32.4b) and deposits with banks ($7.9b). Households incurred financial liabilities through borrowing of long term loans ($38.1b).
CHANGES TO THIS ISSUE
There are no changes to this issue.
REVISIONS IN THIS ISSUE
There have been revisions to previously published aggregates:
CHANGES IN FUTURE ISSUES
There are no changes to future issues.
For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or National accounts by email <email@example.com>.
These documents will be presented in a new window.