Economic activity increased 0.7% in June quarter
Australian Gross Domestic Product (GDP) rose 0.7 per cent in seasonally adjusted chain volume terms in the June quarter 2021, according to figures released by the Australian Bureau of Statistics (ABS) today.
Head of National Accounts at the ABS, Michael Smedes said: "Domestic demand drove growth of 0.7 per cent this quarter which saw continued growth across household spending, private investment and public sector expenditure. Lockdowns had minimal impact on domestic demand, with fewer lockdown days and the prolonged stay at home orders in NSW only commencing later in the quarter".
Private demand contributed 1.0 percentage points to growth. Household spending increased 1.1 per cent and added 0.6 percentage points to growth, driven by spending on services which rose 1.3 per cent as COVID-19 restrictions continued to ease around Australia. Private investment rose 2.0 per cent and contributed 0.3 percentage points to growth. Dwelling investment increased for the fourth consecutive quarter, rising 1.7 per cent reflecting continued demand since the introduction of the HomeBuilder scheme. Housing activity continued to contribute to growth, ownership transfer costs rose for the fourth consecutive quarter, rising 10.0 per cent.
Public demand contributed 0.7 percentage points to growth, driven by continued investment in state and local infrastructure projects. Government spending rose 1.3 per cent driven by health related expenditure. Gross Value Added (GVA) for the Health industry rose 2.0 per cent.
Net trade detracted from growth driven by falls in exports of mining commodities reflecting disruptions to both coal production and transportation of iron ore to ports. Mining operating surplus rose 16.9 per cent, its third consecutive rise, reflecting strong commodity prices. The terms of trade rose 7.0 per cent in the quarter and 24.1 per cent through the year.
The household saving to income ratio fell slightly but remained elevated at 9.7 per cent, as household spending rose and household income fell. Compensation of employees rose 1.2 per cent as employment and hours worked increased with underlying activity in the economy. A fall in benefit payments detracted from income growth, reflecting a decline in the number of recipients and the winding back of additional COVID-19 support payments during the quarter.
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