Australian National Accounts: National Income, Expenditure and Product

Household FCE rose 6.3%, driven by a:

• 17.1% rise in recreation and culture
• 41.6% rise in clothing and footwear
• 24.3% rise in hotels, cafes and restaurants
• 13.9% rise in operation of vehicles
• 7.9% rise in health

The increase was partly offset by a:

• 2.3% fall in food
• 2.5% fall in purchase of vehicles
• 3.0% fall in cigarettes and tobacco
• 2.0% fall in alcoholic beverages
• 1.4% fall in electricity, gas and other fuel

General government FCE rose 0.1%, driven by a:

• 1.2% rise in state and local

The increase was partly offset by a:

• 4.9% fall in national defence
• 0.4% fall in national non-defence

Private investment decreased 1.4%, driven by a:

• 2.2% decrease in dwellings
• 3.7% decrease in ownership transfer costs
• 1.5% decrease in machinery and equipment

Public investment decreased 2.0%, driven by a:

• 24.9% decrease in national defence
• 7.9% decrease in national non-defence

The decrease was partly offset by a:

• 1.9% increase in state and local general government
• 2.8% increase in public corporations

Total inventories rose $1,502m following a fall of $2,872m in the September quarter. The largest contributors to the rise were a:

• $2,736m rise in wholesale trade
• $692m rise in public authorities
• $459m rise in manufacturing

The rise was partly offset by a:

• $1,106m fall in farm 
• $883m fall in retail trade
• $258m fall in mining

Exports of goods and services fell 1.5%, driven by a:

• 5.3% fall in other mineral fuels
• 4.9% fall in coal
• 9.1% fall in travel services
• 13.5% fall in metals and metal manufacturing

The fall was partly offset by a:

• 23.8% rise in cereals
• 8.8% rise in non-monetary gold
• 0.7% rise in mineral ores

Imports of goods and services fell 0.9%, driven by a:

• 34.5% fall in capital goods nes
• 10.3% fall in non-industrial transport equipment
• 7.3% fall in machinery and industrial equipment
• 5.0% fall in other services

The fall was partly offset by a:

• 7.7% rise in processed industrial supplies nes
• 61.5% rise in civil aircraft and confidential items

Compensation of employees rose 2.0%, private sector COE rose 2.2% and public sector COE rose 1.5%. Hours worked rose 4.3% in the quarter.

Six states and territories recorded quarterly rises. The largest increases were:

• 3.4% rise in NSW
• 1.5% rise in VIC

Partly offset by a:

• 4.0% fall in NT
• 0.3% fall in TAS

Private non-financial corporations GOS increased 0.4%, driven by a:

• rise in Manufacturing reflecting broad-based increases in prices for manufactured goods
• rise in Professional, Scientific and Technical Services driven by professional services to support pre-construction work and IT services

Partly offset by a:

• fall in Mining reflecting a significant fall in the price of iron ore
• fall in Retail Trade, Wholesale Trade and Accommodation and Food Services as businesses partially absorbed the rise in input costs resulting in decline in profits

Other sectors GOS rose 0.5%, driven by a:

• 1.2% rise in financial corporations
• 0.3% rise in dwellings owned by persons

Partly offset by a:

• 2.7% fall in public non-financial corporations

Taxes less subsidies on production and imports rose 29.2%. Taxes on production and imports rose 9.8% driven by GST, gambling tax and payroll tax as economic activity rebounded from lockdowns in the previous quarter. Subsidies on production fell, reflecting a reduction in various state and local support payments for businesses during COVID-19 related trading restrictions. 

This increase was driven by a:

• 10.9% rise in Agriculture driven by a record grain harvest. Exports of cereal products rose 23.8%.

This was partly offset by a:

• 0.8% fall in Forestry and Fishing

This decrease was driven by a:

• 4.5% fall in Coal Mining driven by heavy rainfall and labour constraints affecting mine operations
• 1.5% fall in Oil and Gas Extraction driven by maintenance activities, natural field decline, and adverse weather
• 4.5% fall in Other Mining driven by planned and unplanned maintenance activities impacting copper production, partly offset by increased gold production

This was partly offset by a:

• 0.7% rise in Iron Ore Mining following disruptions to production due to mine upgrades during the September quarter 2021

This increase was driven by a: 

• 4.7% rise in Other Manufacturing driven by strong demand for textiles, clothing, and furniture products with the easing of COVID-19 lockdown restrictions in NSW, Victoria and the ACT
• 1.9% rise in Food, Beverage and Tobacco Products driven by beverage manufacturing
• 2.0% rise in Petroleum, Coal, Chemical and Rubber Products reflecting increased demand for fertilisers, as well as fuels and lubricants

This decrease was driven by a:

• 1.5% fall in Water Supply and Waste Services driven by reduced demand for water supply services following heavy rainfall, partly offset by increased recycling activity
• 3.6% fall in Gas Supply driven by falls in industrial usage
• 0.3% fall in Electricity Supply due to mild weather conditions resulting in reduced demand for cooling

This increase was driven by a: 

• 2.9% rise in Construction Services as activity rebounded after restrictions affected small scale projects on residential homes in the previous quarter
• 2.6% rise in Heavy and Civil Engineering Construction reflecting increased work done on public infrastructure projects

This was partly offset by a:

• 0.9% fall in Building Construction as material and labour shortages impacted construction activity. Building Construction GVA is up 4.8% through the year.

This increase was driven by:

• Basic Material Wholesaling following a record grain harvest and increased demand for fuel and lubricants as lockdown restrictions eased
• Machinery & Equipment Wholesaling with increased demand for agricultural machinery and telecommunications equipment
• Grocery, Liquor and Tobacco Wholesaling due to increased demand for alcohol and specialised food

This increase was driven by:

• Other Store Based Retailing as stores reopened across NSW, Victoria and the ACT as COVID-19 restrictions were eased
• Motor Vehicle and Motor Vehicle Parts Retailing due to increased fuel retailing and vehicle operations as extended lockdown restrictions ended. Purchase of motor vehicles fell due to supply chain disruptions.

This was partly offset by:

• Food Retailing as households were able to dine out with the easing of trading restrictions, reducing food consumption at home

This increase was driven by:  

• Food and Beverage Services following the re-opening of cafes, hotels and restaurants due to easing of COVID-19 restrictions in NSW, Victoria and the ACT
• Accommodation Services rose as regional and interstate travel were reintroduced in NSW, Victoria and the ACT

This increase was driven by a:

• 2.6% rise in Transport, Postal and Storage Services with continued demand for Postal, Courier and Other Services driven by online shopping and delivery services. The rise in Warehousing and Storage Services was driven by high demand from the agriculture industry.
• 3.2% rise in Road Transport with increased demand for road freight from the agricultural sector and increased passenger transport as lockdown restrictions eased
• 56.5% rise in Air and Space Transport with the easing of COVID-19 restrictions on domestic and international travel

This was partly offset by a:

• 2.1% fall in Rail, Pipeline and Other Transport due to supply chain and logistics interruptions for Water, Pipeline, and Other Transport

This increase was driven by a:

• 7.4% rise in Other Information and Media Services driven by increases in Publishing and Motion Picture and Sound Recording Activities and Broadcasting and Internet Service Providers (ISP)

This was partly offset by a:

• 1.1% fall in Telecommunication Services as data usage fell following a rise in the previous quarter

This increase was driven by a:

• 1.1% rise in Finance, reflecting a rise in dwelling loan balances with improved housing market activity and strength in personal deposit balances as household saving remained elevated. Business loans and deposits also contributed to the increase.
• 1.1% rise in Other Financial and Insurance Services reflecting an increase in superannuation with a rise in personal and employer contributions. Financial auxiliary services also contributed to the rise.

This increase was driven by a:

• 2.2% rise in Property Operators and Real Estate Services driven by strength in non-residential property operators and increased real estate activity
• 7.4% rise in Rental and Hiring Services with a rebound in demand for car hire and other tourism-related rental services

This increase was driven by a:

• 5.0% rise in Other Professional, Scientific, and Technical Services with strong demand for marketing analytics, consulting services and pre-construction activity
• 6.1% rise in Computer System Design and Related Services due to a continued demand for IT and software consultants

• Administrative Services rose due to increased demand for employment and recruitment services, and travel agency services as restrictions were lifted.

• Health Care and Social Assistance rose driven by private health as the demand for allied health and dental services increased. Public health with increased testing and vaccination programs, as the COVID-19 health response continued in the quarter.

• Arts and Recreation Services rose in line with easing COVID-19 restrictions in NSW, Victoria and the ACT resulting in re-opening of theme parks, theatres and casinos.

• Personal and Other Services rose reflecting increased demand for personal care services. Repair and Maintenance rose driven by car servicing activity as lockdown restrictions were lifted.

Total final consumption expenditure increased 7.8%, driven by a:

• 11.4% increase in household consumption, as restrictions were eased following lockdown in the previous quarter. Spending on recreation and culture, clothing and footwear and hotels, cafes and restaurants led the rise.

Partially offset by a: 

• 0.6% decrease in government consumption led by weakness in national defence expenditure

Private gross fixed capital formation increased 4.1%, due to a:

• 8.3% increase in machinery and equipment investment, led by a rebound in purchases of equipment within the Accommodation and food services industry following lockdown
• 5.0% rise in non-dwelling construction reflecting strength in new buildings as construction activity returned following the lifting of restrictions
• 3.3% increase in total dwellings led by strength in other residential dwellings following restrictions on building activity in the previous quarter

Public gross fixed capital formation increased 0.1%, driven by a:

• 4.3% increase in state and local general government in line with the recovery in construction activity
• 10.3% increase in Commonwealth public non-financial corporations due to on-going investment in utility and transport infrastructure

Partially offset by a:

• 17.1% decrease in national general government investment following large purchases of assets in the prior quarter

Total final consumption expenditure increased 5.7%, due to a:

• 7.5% increase in household final consumption expenditure due to eased lockdown restrictions. Recreation and culture, clothing and footwear and hotels, cafes and restaurants expenditure led the rises.
• 1.6% increase in government consumption led by an increase in state and local expenditure. Expenditure on health related use of goods and services continued to grow in due to the ongoing response to the COVID-19 pandemic.

Private gross fixed capital formation decreased 3.0%, driven by a:

• 11.1% decrease in non-dwelling construction following elevated investment in renewable energy projects in the prior quarter
• 2.3% fall in total dwellings reflecting project delays due to constraints on materials and labour

Partially offset by a:

• 3.0% increase in machinery and equipment reflecting a rise in spending on new assets in the Transport, Postal and Warehousing, and Construction industries. 

Public gross fixed capital formation decreased 0.5%, driven by a:

• 20.2% decrease in national general government investment following large purchases of assets in the prior quarter

Partially offset by:

• 4.5% increase in state and local general government driven by investment in health facilities

Total final consumption expenditure increased 1.2%, driven by a: 

• 2.0% increase in household consumption expenditure led by strength in the discretionary categories including recreation and culture, clothing and footwear and hotels, cafes and restaurants. Purchase of vehicles experienced a large fall due to supply shortages.

Partially offset by a:

• 0.5% decrease in government expenditure led by weakness in national defence expenditure and falls in state and local government spending

Private gross fixed capital formation decreased 3.3%, due to a:

• 6.1% decrease in total non-dwelling construction following two quarters of strong growth led by renewable energy projects and the completion of new buildings
• 4.4% decrease in total dwellings led by decreases in houses and alterations and additions as construction material and labour shortages caused project delays

Public gross fixed capital formation decreased 6.1%, due to a:

• 23.3% decrease in National general government investment following large purchases of assets in the prior quarter
• 3.0% fall in state and local general government driven by the education sector

Partly offset by a:

• 0.4% rise in public non-financial corporations.

Total final consumption expenditure increased 1.4%, due to a:

• 1.4% increase in household consumption driven by strength in hotels, cafes and restaurants, operations of vehicles and recreation and culture
• 1.3% increase in government final consumption driven by a rise in state and local spending on health, education and transport. This was partially offset by weakness in national government consumption expenditure following elevated defence spending in the prior quarter. 

Private gross fixed capital formation decreased 3.0%, driven by a:

• 15.3% decrease in machinery and equipment investment following a number of large purchases in the previous quarter
• 6.6% fall in total dwellings reflecting weakness across houses, other residential and alterations and additions

Partly offset by a:

• 4.7% increase in non-dwelling construction led by strength in mining investment

Public gross fixed capital formation decreased 4.8%, driven by a:

• 17.4% decrease in national general government investment following large purchases of assets in the prior quarter
• 15.0% decrease in Commonwealth public non-financial corporations driven by a fall in investment in buildings

Partly offset by a:

• 1.6% rise in state and local general government, reflecting strength in education structures and buildings investment

Total final consumption expenditure increased 1.4%, due to a:

• 1.5% increase in household consumption driven by strength across most goods and services. This was partially offset by weakness in purchases of vehicles.
• 1.0% increase in government consumption driven by increases in both health employee expenses and use of goods and services. This was partially offset by a fall in national consumption expenditure following a strong spending on defence the previous quarter. 

Private gross fixed capital formation decreased 2.8%, due to a:

• 10.0% decrease in machinery and equipment, with the fall following elevated equipment spend from mining businesses over the last year
• 2.9% decrease in total dwellings led by a fall in new houses

Partially offset by a:

• 2.7% increase in total non-dwelling construction led by an increase in new building investment across industries

Public gross fixed capital formation decreased 4.1%, driven by a:

• 21.8% decrease in National general government  following large purchases of assets in the prior quarter
• 3.7% decrease in state and local general government

Partially offset by a:

• 6.0% increase in state and local public non-financial corporations due to increased investment on infrastructure

Total final consumption expenditure decreased 0.2%, due to a:

• 1.8% decrease in government consumption expenditure driven by a fall in social benefits to households. Commonwealth defence consumption expenditure was also weaker after a strong rise in the September quarter.

Partially offset by a:

• 0.5% increase in household consumption reflecting the strength in hotels, cafes and restaurants, operation of vehicles and transportation services

Private gross fixed capital formation decreased 9.2%, driven by a:

• 18.9% decrease in total machinery and equipment following a strong rise in the previous quarter
• 8.2% fall in total dwellings led by weakness in houses and alterations and additions, reflecting the impact of material and labour supply shortages

Public gross fixed capital formation increased 2.7%, driven by a:

• 7.9% increase in state and local general government investment in new buildings

Total final consumption expenditure decreased 1.7%, driven by a:

• 3.6% decrease in government final consumption expenditure, with falls at both the national and state and local level
• 0.2% decrease in household final consumption expenditure reflecting the impacts of a series of local lockdowns throughout the quarter

Private gross fixed capital formation decreased 0.7%, due to a: 

• 14.9% fall in total machinery and equipment due to fewer vehicle and construction equipment purchases
• 10.5% decrease in ownership transfer costs due to lower stamp duty transfers

Partially offset by a:

• 7.0% increase in non-dwelling construction due to increases in engineering construction

Public gross fixed capital formation decreased 5.7%, driven by a:

• 30.8% decrease in state and local public non-financial corporations led by falls in structures following the completion of projects in prior quarters
• 3.3% decrease in state and local general government

Total final consumption expenditure increased 2.1% driven by a:

• 8.4% increase in household consumption expenditure reflecting the easing of lockdown measures and the recovery across discretionary components including recreation and culture, clothing and footwear and hotels, cafes and restaurants

Partially offset by a:

• 1.7% decrease in government consumption expenditure led by a decrease in national consumption expenditure following elevated defence expenditure in the September quarter. State and local expenditure partially offset the fall led by a rise in social benefits to households.

Private gross fixed capital formation increased 0.7%, driven by a:

• 16.1% rise in total non-dwelling construction as construction activity recovered following lockdowns in the previous quarter
• 3.3% increase in total dwellings reflecting led by strength in houses as restrictions on construction activity were lifted

Partially offset by a:

• 29.3% decrease in ownership transfer costs following consecutive quarters of elevated growth

Public gross fixed capital formation increased 0.9%, driven by a:

• 85.6% increase in state and local public non-financial corporations driven by increased work on structures

Partially offset by a:

• 2.9% decrease in National general government following large purchases of assets in the prior quarter

The 2020-21 issue of the Australian National Accounts: State Accounts was released on 19 November 2021. This publication provides detailed annual estimates of gross state product (GSP) for all states and territories. These are estimated using the expenditure, income and production approaches. Also published are estimates of household and agricultural incomes.

The 2020-21 issue of Australian National Accounts: Tourism Satellite Account was released on 10 December 2021. This publication provides estimates of tourism's direct contribution to the economy including GDP, value added, employment and consumption by product and industry. It adopts the basic system of concepts, classifications, definitions, tables and aggregates of the System of National Accounts 2008 (2008 SNA), the international standard for a systematic summary of national economic activity, from a functional perspective.

The 2020-21 issue of Estimates of Industry Multifactor Productivity was released on 13 December 2021. It provides updated estimates of multifactor productivity (MFP) for the 16 industries defined to comprise the market sector. Longer time series are produced for 12 selected industries. Also included are productivity growth cycles for market sector industries and selected industries aggregates back to 1998-99 and 1973-74, respectively. The release includes experimental estimates of productivity growth cycles for individual industries, sources of aggregate labour productivity growth and its industry origin. Experimental estimates of state productivity back to 1994-95 are also provided.