Analytical expenditure aggregates

20.80    The following analytical splits of household final consumption expenditure (HFCE) are produced:

• Goods and services consumption
• Essential and discretionary consumption

20.81    Table 20.1 shows how the components of HFCE are allocated to each of the above categories. This classification aligns with the broad outlays defined by the Classification of Individual Consumption by Purpose (see chapter 10), and with the concepts of essential and discretionary consumption used by the Reserve Bank of Australia.

20.82    The analytical aggregates of HFCE are published quarterly in current prices and chain volume measures.

20.83    New private business investment is the sum of gross fixed capital formation (GFCF) of new non-dwelling construction, new machinery and equipment, cultivated biological resources, and intellectual property products. It does not include second-hand asset sales between the public sector and private corporations, which are included in private business investment.

20.84    New private business investment is published in current prices and chain volumes in the ASNA.

20.85    Mining private business investment measures GFCF by the Mining industry (ANZSIC Division B). It is made up of three subcomponents: GFCF of non-dwelling construction, machinery and equipment, and intellectual property products. On a quarterly basis, estimates for mining investment are compiled by interpolating and extrapolating annual estimates using the following indicators:

• Non-dwelling construction: detailed ‘type of construction’ estimates from the Engineering Construction Survey
• Machinery and equipment: estimates of capital expenditure by the Mining industry on equipment, plant and machinery, from Private New Capital Expenditure and Expected Expenditure
• Intellectual property products: a combination of estimates of total private exploration from Mineral and Petroleum Exploration and linear interpolation of annual estimates from the annual national accounts.

20.86    Quarterly non-mining investment is calculated as the residual of total private business investment, less mining investment. In addition to the 3 subcomponents above, it also includes investment in cultivated biological resources. Quarterly and annual estimates of mining and non-mining investment are published in current prices and chain volumes in the ASNA.

20.87    Final demand is equal to total final expenditures and, with changes in inventories and exports less imports of goods and services, makes up GDP. Private final demand is then the sum of HFCE and private GFCF, while public final demand is the sum of government final consumption expenditure and GFCF by general government and public corporations.

20.88    Quarterly and annual estimates of public and private final demand are published in current prices and chain volumes in the ASNA.

20.89    Net trade is the impact of imports and exports on GDP as calculated under the expenditure approach. It is the value of exports of goods and services less the value of imports of goods and services.

20.90    The contribution of net trade to growth in volume GDP is published quarterly in the ASNA and is calculated using the method outlined in Chapter 6.