5206.0 - Australian National Accounts: National Income, Expenditure and Product, Mar 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 05/06/2019   
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Analysis


Australian economy grew by 0.4%

Australia's gross domestic product (GDP) grew by 0.4% in the March quarter 2019, following a 0.2% rise in the December quarter. The Australian economy grew 1.8% through the year.


Gross domestic product, Volume measures: Seasonally adjusted
Diagram shows GROSS DOMESTIC PRODUCT, Volume measures: Seasonally adjusted


Continued strength in government expenditure

Government final consumption expenditure rose 0.8% in the quarter and remains strong through the year at 5.1%. National non-defence (2.4%) was the main contributor to growth, due to increases in social benefits to households from continued government spending on disability and health services. State and local government expenditure increased 0.4% driven by rises in employee expenses.


Government final consumption expenditure, Volume measures: Seasonally adjusted
Diagram shows GOVERNMENT FINAL CONSUMPTION EXPENDITURE, Volume measures: Seasonally adjusted


Investment in dwellings continues to fall

Dwelling investment fell 2.5% in the quarter, falling 3.1% through the year. This fall follows significant falls in dwelling approvals. Prior to this, dwelling investment reached record levels in September quarter 2018.


Dwelling investment, Volume measures: Seasonally Adjusted
Diagram shows DWELLING INVESTMENT, Volume measures: Seasonally Adjusted


Steady growth in non-mining investment

Non-mining investment grew 2.0%, driven by broad based investment in new buildings, particularly offices and accommodation buildings. Mining investment continued to decline, falling 1.8% in the quarter.


Mining and non-mining investment, Volume measures: Seasonally adjusted
Diagram shows MINING AND NON-MINING INVESTMENT, Volume measures: Seasonally adjusted


Household consumption slows

Household final consumption expenditure increased 0.3%, with through the year growth moderating to 1.8%. Households reduced discretionary spending, in particular on recreation and culture, hospitality and furnishings and household equipment.


Household final consumption expenditure, Volume measures: Seasonally adjusted
Diagram shows HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Volume measures: Seasonally adjusted


Household saving ratio increased

The household saving ratio rose to 2.8 with growth in household disposable income outpacing subdued growth in household spending. The growth in gross disposable income was primarily driven by continued growth in compensation of employees. Non-life insurance claims continued to contribute to household income following a significant rise in the December quarter. These insurance claims are related to recent natural disaster events, namely the Sydney hail storms in December quarter and Queensland floods in the March quarter.


Household saving ratio, Current prices: Seasonally adjusted
Diagram shows HOUSEHOLD SAVING RATIO, Current prices: Seasonally adjusted