The Australian economy grew 0.4 per cent in seasonally adjusted chain volume terms in the September quarter 2019 and 1.7 per cent through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.
Chief Economist for the ABS, Bruce Hockman, said: “The economy has continued to grow, however the rate of growth remains well below the long run average.”
Net exports contributed 0.2 percentage points to growth this quarter. Domestic final demand remained subdued contributing 0.2 percentage points. Government spending was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.
The household sector remained relatively subdued, with dwelling investment recording its fourth consecutive decline with a fall of 1.7 per cent during the quarter. Household expenditure increased 0.1 per cent, with weakness in spending on discretionary goods and services.
The household saving ratio rose to 4.8. "The reduction to tax payable did not translate to a rise in discretionary spending, which led to a visible impact to household saving," said Mr Hockman.
The rise in household gross disposable income was driven by a decline in income tax payable and interest paid on dwellings as well as continued rises in compensation of employees.
This release marks 60 years since the commencement of the national accounts time series in September quarter 1959. More information on the history of national accounts can be found in feature article titled, 60 years of national accounts statistics in Australia.
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