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
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
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
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
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
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
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