5206.0 - Australian National Accounts: National Income, Expenditure and Product, Dec 2019 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 04/03/2020   
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Analysis

Australian economy grew by 0.5%

Australia's gross domestic product (GDP) grew by 0.5% in the December quarter 2019, following a 0.6% rise in the September quarter (revised up 0.2 percentage points). The Australian economy grew 2.2% through the year.


Gross domestic product, chain volume measures: seasonally adjusted
Graph shows Gross domestic product, Chain volume measures: Seasonally adjusted


Sales events support growth in household consumption

Household final consumption expenditure increased 0.4% in the quarter, with through the year growth up 1.2%. The quarterly rise in household consumption was driven by consumption of discretionary goods and services, which rose 0.5%, the largest increase since June 2018. Essential goods and services also contributed with a modest rise.


Household final consumption expenditure, chain volume measures: seasonally adjusted
Graph shows Household final consumption expenditure, Chain volume measures: Seasonally adjusted

Essential and discretionary consumption expenditure, chain volume measures: seasonally adjusted
Graph shows Essential and discretionary consumption expenditure, Chain volume measures: Seasonally adjusted


Dwelling investment continues to decline

Investment in new and used dwellings fell 4.1% in the quarter and 12.2% through the year, reflecting continued weakness in dwelling approvals. Both houses (-4.4%) and other residential dwellings (-3.3%) contributed to the decline this quarter.


New and used dwelling investment, chain volume measures: seasonally adjusted
Graph shows New and used dwelling investment, Chain volume measures: Seasonally Adjusted


Non-mining drives fall in private business investment

Non-mining business investment fell 3.6% with weakness in road, renewables and non-residential building projects. Mining business investment rose 5.0% this quarter and increased 3.2% through the year, the first rise since September 2017.


Mining and non-mining investment, chain volume measures: seasonally adjusted

Graph shows Mining and non-mining investment, Chain volume measures: Seasonally adjusted


Commodity prices drive falls in the terms of trade

Falls in commodity prices this quarter resulted in a 5.3% decline in the terms of trade. Weak commodity prices reduced non-financial corporations gross operating surplus, which fell for the first time since June 2017.


Private non-financial corporations gross operating surplus, current prices: seasonally adjusted
Graph shows Private non-financial corporations gross operating surplus, Current prices: Seasonally adjusted


Increased Mining production drove gross value added (GVA)

Mining GVA rose 1.6%, driven by Coal Mining and Other Mining following maintenance activities in the September quarter 2019. Through the year Mining rose 7.3%.


Mining gross value added, chain volume measures: seasonally adjusted
Graph shows Mining gross value added, Chain volume measures: Seasonally adjusted


Income tax payable drove fall in household saving ratio

The fall in gross disposable income resulted in the household saving ratio declining from 4.8% in the September quarter to 3.6% in the December quarter 2019. The fall in gross disposable income was driven by a 9.3% increase in tax payable following a strong decline with the introduction of the low and middle income tax offset last quarter.


Household saving ratio, seasonally adjusted
Graph shows Household saving ratio, Seasonally adjusted