Australian National Accounts: National Income, Expenditure and Product

Household FCE rose 0.3%, driven by a:

• 2.4% rise in food
• 1.6% rise in hotels, cafes and restaurants
• 5.7% rise in transport services
• 0.5% rise in rent and other dwelling services
• 2.9% rise in purchase of vehicles

The increase was partly offset by a:

• 1.4% fall in recreation and culture
• 2.7% fall in clothing and footwear
• 1.8% fall in operation of vehicles
• 1.2% fall in furnishings and household equipment

General government FCE rose 0.6%, driven by a:

• 2.2% rise in national non-defence

The increase was partly offset by a: 

• 1.4% fall in national defence
• 0.2% fall in state and local

Private investment decreased 1.7%, driven by a:

• 2.7% fall in non-dwelling construction
• 6.2% fall in ownership transfer costs
• 1.2% fall in machinery and equipment
• 0.9% fall in dwellings

The decrease was partly offset by a:

• 1.0% rise in intellectual property products
• 2.9% rise in cultivated biological resources

Public investment decreased 0.7%, driven by a:

• 1.9% fall in state and local general government
• 2.2% fall in national non-defence
• 2.0% fall in national defence

The decrease was partly offset by a:

• 3.0% rise in state and local public corporations
• 4.7% rise in commonwealth public corporations

Total inventories rose $1,143m following a rise of $3,857m in the September quarter. The largest contributors to the rise were a:

• $1,089m rise in Public Authorities  
• $897m rise in Wholesale Trade 
• $509m rise in Farm
• $327m rise in Manufacturing 
• $41m rise in Other Non-Farm Industries 

This rise was partly offset by a:

• $1,398m fall in Retail Trade 
• $322m fall in Mining 

Exports of goods and services rose 1.1%, driven by a:

• 18.9% rise in travel services
• 8.2% rise in coal
• 1.2% rise in mineral ores
• 11.0% rise in metals & metal manufacturing
• 20.6% rise in transportation services

The rise was partly offset by a:

• 23.7% fall in non-monetary gold
• 34.1% fall in wool and sheepskins
• 9.5% fall in meat
• 1.5% fall in other services

Imports of goods and services fell 4.3%, driven by a:

• 4.8% fall in processed industrial supplies nes
• 5.2% fall in consumption goods nes
• 11.1% fall in transportation services
• 6.9% fall in machinery & industrial equipment
• 11.3% fall in telecommunications equipment

The fall was partly offset by a:

• 9.4% rise in non-industrial transport equipment
• 7.2% rise in parts for transport equipment
• 134.0% rise in other merchandise goods
   

Compensation of employees rose 2.1%, private sector COE rose 2.4% and public sector COE rose 0.7%. Private sector COE rose in line with increased hours worked, headcount, wage rises due to skilled labour shortages and minimum wage rises for some sectors that came into effect in October.

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

• 3.9% rise in Tasmania
• 3.0% rise in ACT
• 2.9% rise in Queensland

Private non-financial corporations GOS increased 3.7%, driven by a:

• rise in Mining due to increased production and higher commodity prices 
• rise in Retail Trade due to strong prices and moderation in cost pressures
• rise in Professional, Scientific and Technical Services as operating costs fell with less services imported from overseas

Other sectors GOS rose 1.7%, driven by a:

• 2.1% rise in dwellings owned by persons
• 5.8% rise in public non-financial corporations
• 0.5% rise in financial corporations

Taxes less subsidies on production and imports rose 2.0%. Taxes on production and imports rose 3.8% driven by a rise in excise tax, GST and gambling tax, partly offset by taxes on financial and capital transactions. The large rise in the fuel excise tax was driven by the re-instatement of the fuel excise tax rate.  Subsidies on production rose 19.5% driven by the Fuel Tax Credits Scheme claimed by businesses returning to normal levels, while state and local subsidy payments related to transport services also contributed to the rise this quarter.

The decrease was driven by a:

• 2.8% fall in Agriculture as wet weather adversely impacted East Coast grain production, cotton planting, and livestock.  
• 1.1% fall Forestry and Fishing driven by agriculture support services.

The increase was driven by a:

• 4.8% rise in Iron Ore Mining, due to increased production in key areas and supply chain improvements.  
• 1.0% rise in Oil and Gas Extraction following maintenance activity in the September quarter.
• 2.5% rise in Exploration and Mining Support Services.
• 0.9% rise in Other Mining driven by increased copper production.

This was partly offset by a:

• 1.4% fall in Coal Mining due to wet weather and flooding on the East Coast. 

All subdivisions fell as imports and industry demand decreased, and wet weather impacted production. The decrease was driven by a: 

• 4.4% fall in Other Manufacturing driven by decreased output in wood manufacturing.
• 1.7% fall in Machinery and Equipment.
• 2.2% fall in Metal Products.
• 0.4% fall in Food, Beverage and Tobacco Products.
• 0.2% fall in Petroleum, Coal, Chemical and Rubber Products.

The fall was driven by a:

• 8.0% fall in Electricity Supply as milder weather conditions led to reduced usage after elevated winter demand.
• 2.1% fall in Water Supply and Waste Services.

This was partly offset by a:

• 3.2% rise in Gas Supply following a strong fall in the September quarter. 

The decrease was driven by a: 

• 2.6% fall in Building Construction due to decreased Non-residential Building Construction.

This was partly offset by a:

• 1.6% rise in Heavy and Civil Engineering Construction driven by public road and rail projects.

The decrease was driven by:

• Machinery and Equipment Wholesaling due to decreased demand for agricultural and industrial machinery. 
• Other Goods Wholesaling with decreased imports and softening retail demand.
• Grocery, Liquor and Tobacco Wholesaling.

The decrease was driven by:

• Other Store-Based Retailing due to softening consumer demand. 

This was partly offset by:

• A rise in Food Retailing following four consecutive falls as shopping patterns stabilised following COVID-19 lockdowns.

The increase was driven by:  

• Food and Beverage Services due to continued demand for restaurants, cafes, and pubs.   

This was partly offset by:

• Accommodation Services as demand eased for domestic travel.

The increase was driven by a:

• 0.9% rise Transport, Postal and Storage Services due to increased international airport activity.
• 1.8% rise in Rail, Pipeline and Other Transport as demand increased for public transport and rail freight.
• 4.8% rise in Air and Space Transport due to increased demand for international travel. 

This was partly offset by a:

• 1.1% fall in Road Transport following strength in the June and September quarters.

The increase was driven by a:

• 4.2% rise in Other Information and Media driven by Internet Publishing, Broadcasting and ISP Services
• 0.6% rise in Telecommunication Services due to increased household use of telecommunication services. 

The decrease was driven by a: 

• 0.6% fall in Finance due to weakness in dwelling loans and deposit balances.

This was partly offset by a:

• 0.6% rise in Other Financial and Insurance Services driven by superannuation services. 

The increase was driven by a: 

• 1.4% rise in Property Operators and Real Estate Services driven by commercial property operators. 

This was partly offset by a:

• 0.1% fall in Rental and Hiring Services following strength in the June and September quarters. 

The decrease was driven by a:

• 3.3% fall in Other Professional, Scientific and Technical Services due to decreased demand for accounting and consulting services.

This was partly offset by a: 

• 2.5% rise in Computer System Design and Related Services.  

Administrative Services rose due to increased labour hire, recruitment, and events management services.

Health Care and Social Assistance fell due to reduced demand for public health, partly offset by an increase in private health.

Arts and Recreation Services rose driven by Sports and Recreation Activities and Gambling Activities.

The rise was driven by Personal and Other Services following a fall in the September quarter.

Total final consumption expenditure increased 0.3%, driven by a:

• 0.2% rise in household consumption, led by increased spending on hotels, cafes and restaurants (1.7%) and transport services (4.8%), as well as essential goods and services, such as food (1.8%) and health (1.2%). The increase was partly offset by reduced spending on discretionary categories such as recreation and culture (-1.7%) and clothing and footwear (-3.8%).
• 0.5% increase in government spending as national expenditure rose (1.4%) due to higher social benefits to households such as aged care and pharmaceutical benefits. State and local expenditure partly offset the rise (-0.3%) with a reduction in COVID-19 and transport related uses of goods and services. 

Private gross fixed capital formation decreased 1.8%, due to a:

• 4.3% fall in total non-dwelling construction. There was weakness in both new building and new engineering construction with decreased work done on road and energy projects.
• 4.9% decrease in ownership transfer costs due to the continued fall in residential property market activity.
• 1.2% decrease in total dwellings, driven by a fall in alterations and additions as HomeBuilder renovation projects reached completion. New and used dwellings partly offset the fall due to improved weather conditions in metropolitan areas and a slight easing of materials shortages.

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

• 2.5% decrease in general government led by weakness in state and local (-2.8%) with reduced expenditure on major transport infrastructure.

Partly offset by a:

• 7.1% increase in public corporations led by Commonwealth investment. 

Total final consumption expenditure increased 0.7%, due to a:

• 0.4% increase in household consumption. Food (2.0%) led the rise, while spending on transport services (7.8%) and hotels, cafes and restaurants (2.2%) also contributed. Partly offsetting the rise was a decrease in spending on discretionary categories such as recreation and culture (-1.7%) and clothing and footwear (-2.5%).
• 1.5% increase in government expenditure led by a rise in national (2.0%), primarily from increased Commonwealth spending on social benefits to households such as aged care and pharmaceuticals. There was also an increase in state and local expenditure (1.1%) due to increased spending on use of goods and services.

Private gross fixed capital formation decreased 1.0%, due to a:

• 2.4% decrease in total non-dwelling construction due to weakness in both new building and new engineering construction.
• 5.4% decrease in ownership transfer costs as a result of the falling activity in the residential property market.
• 1.4% decrease in total dwellings with weakness across both new and used dwellings and alterations and additions.

Partly offset by a:

• 2.8% increase in total machinery and equipment led by increased investment by the Retail and Transport industries.

Public gross fixed capital formation decreased 3.1%, driven by a:

• 4.3% decrease in state and local general government due to a fall in building activity as projects approach completion.

Total final consumption expenditure increased 0.3%, driven by a: 

• 1.2% increase in government expenditure, as state and local expenditure rose (1.3%) primarily due to an increase in non-employee expenses, which includes the Queensland Government's "Cost of living rebate for households". An increase in national expenditure (1.0%) also contributed with strength in social benefits to households such as aged care and pharmaceuticals.

Partly offset by a:

• 0.1% decrease in household consumption led by falls in furnishings and household equipment (-4.1%), electricity, gas and other fuels (-18.0%), and operation of vehicles (-3.6%). The fall was partly offset by essential goods and services, such as food (4.0%).

Private gross fixed capital formation fell 3.4%, led by a:

• 6.9% fall in total machinery and equipment driven by less investment by the Mining and Agriculture industries in the quarter.
• 5.3% fall in total non-dwelling construction. There was weakness in both new building and new engineering construction with a decrease in work done on energy projects and retail and office building projects.
• 9.6% decrease in ownership transfer costs as a result of falling housing market activity.

Partly offset by a:

• 1.4% increase in total dwellings, driven by new dwellings as weather conditions improved in parts of the state and materials shortages eased slightly.

Public gross fixed capital formation increased 1.6% driven by a:

• 6.7% increase in state and local public corporations, primarily in utility and transport structures. 
• 1.6% increase in state and local government as work done increased for several transport infrastructure projects.

Total final consumption expenditure increased 0.4%, due to a:

• 1.6% increase in government expenditure driven by both state and local (1.7%) and national spending (1.4%). State and local spending was led by strength in employee expenses across a range of departments and agencies. National spending was driven by non-defence due to increased social benefits to households such as aged care and pharmaceuticals.

Partly offset by a:

• 0.1% decrease in household consumption. Leading the falls were furnishings and household equipment (-3.5%) followed by electricity, gas and other fuel (-4.8%), aided by cooler than average temperatures. This was partly offset by a rise in health (1.8%), transport services (7.3%) and hotels, cafes and restaurants (1.0%).

Private gross fixed capital formation decreased 2.2%, driven by a:

• 4.3% decrease in total dwellings, due to falls in work done and commencement rates for townhouses and apartments.
• 10.5% decrease in ownership transfer costs, reflecting declines in housing market activity.
• 1.5% decrease in total machinery and equipment driven by less spending on transport equipment.

Partly offset by a:

• 0.1% increase in total non-dwelling construction driven by rises in new engineering construction in the Mining industry.

Public gross fixed capital formation fell 3.3%, driven by a:

• 16.9% decrease in state and local public corporations, led by weaker utilities expenditure after elevated levels of investment in previous quarters.
• 1.5% decrease in state and local general government as spending fell on road infrastructure.

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

• 1.6% increase in household consumption. Leading the rise was electricity, gas and other fuel (114.7%) which follows a fall in the previous quarter (-58.1%) due to the impact of the Western Australian Government's "Household Electricity Credit". Also contributing to the rise were food (3.0%) and purchase of vehicles (8.4%), as well as tourism related categories such as hotels, cafes and restaurants (3.1%) and transport services (5.9%). This was partially offset by falls in discretionary goods consumption within recreation and culture (-2.6%) and clothing and footwear (-2.6%).

Partly offset by a:

• 2.8% decrease in government expenditure driven by a fall of 5.4% in state and local spending due to a decrease in social benefits to households (WA Household Electricity Credit) and falls in use of goods and services across a range of departments, including Health.

Private gross fixed capital formation decreased 0.6%, due to a:

• 4.3% fall in total machinery and equipment due to reduced investment by the Mining industry. 
• 7.0% fall in ownership transfer costs due to the decline in housing market activity.

Partly offset by a:

• 1.8% increase in total non-dwelling construction due to continued strength in new engineering construction from the Mining industry.
• 3.9% increase in total dwellings led by a rise in new houses as supply constraints on materials improved over the quarter.

Public gross fixed capital formation increased 2.0%, driven by a:

• 12.3% increase in state and local public corporations due to a rise in spending on rail infrastructure and public housing.

Partly offset by a:

• 2.2% decrease in general government expenditure, with both national (-4.5%) and state and local (-1.3%)  investment falling. 

Total final consumption expenditure increased 0.4%, due to a:

• 1.0% increase in government expenditure driven by strength in national (1.9%) as social assistance benefits increased for aged care, pharmaceuticals and education.
• Household consumption was flat at 0.0%. Rises were seen in food (2.4%), transport services (8.8%), health (2.7%) and hotels, cafes and restaurants (1.2%), reflecting increased spending on essentials and tourism related categories. Partly offsetting the rise were falls in discretionary categories such as recreation and culture (-6.2%) and furnishings and household equipment (-2.1%).

Private gross fixed capital formation decreased 2.3%, driven by a:

• 5.9% decrease in total dwellings, reflecting falls in work done on new housing construction.
• 2.7% decrease in total machinery and equipment, due to less investment on transport vehicles and equipment across several industries.

Partly offset by a: 

• 2.6% increase in total non-dwelling construction driven by rises in new building investment, particularly work done on accommodation projects.

Public gross fixed capital formation increased 0.3%, driven by a:

• 4.1% rise in state and local general government due to increased spending on road infrastructure projects.

Partly offset by a: 

• 5.0% decrease in state and local public corporations due to a fall in investment on utility structures.

Total final consumption expenditure decreased 0.3%, driven by a:

• 0.9% decrease in government expenditure, with a 2.0% decrease in state and local expenditure reflecting weakness in non-employee expenses across various areas including health.

Partly offset by a:

• 0.2% increase in household consumption driven by food (3.1%) and other goods and services (0.9%). Partly offsetting the rise were hotels, cafes and restaurants (-3.3%) and operation of vehicles (-7.3%).

Private gross fixed capital was flat at 0.0%, due to a: 

• 24.1% decrease in ownership transfer costs due to falling activity in the residential property market.
• 11.3% decrease in intellectual property products due to weakness in petroleum exploration. 

Partly offset by a:

• 5.6% increase in total non-dwelling construction driven by increased mining investment. 

Public gross fixed capital formation decreased 4.6%, driven by a:

• 19.0% decrease in national general government due to falls in building investment.
• 24.4% decrease in state and local public corporations due to reduced utilities investment.

Partly offset by a: 

• 10.0% increase in state and local general government due to a rise in infrastructure investment for roads and public housing.

Total final consumption expenditure increased 1.0%, driven by a:

• 1.6% increase in government expenditure led by a rise in national expenditure (2.4%) due to Commonwealth employee expenses and social benefits to households. State and local expenditure (-2.0%) partly offset the rise due to a reduction in spending on use of goods and services related to COVID-19.
• 0.1% increase in household consumption, driven by spending on essential categories such as food (1.6%) and health (2.1%) and select services such as transport services (7.2%) and hotels, cafes and restaurants (1.4%). The rise was offset by a decrease in discretionary spending on recreation and culture (-4.5%), furnishings and household equipment (-5.8%), and clothing and footwear (-1.7%).

Private gross fixed capital formation decreased 3.4%, driven by a:

• 3.2% decrease in total dwellings driven by a fall in new and used houses as apartment building projects were completed. There were also fewer alterations and additions which contributed to the fall.
• 7.8% decrease in ownership transfer costs due to reduced activity in the residential property market.
• 3.8% decrease in non-dwelling construction, driven by a fall in new building investment due to major project completions.

Public gross fixed capital formation decreased 2.6%, driven by a:

• 1.4% decrease in national general government.
• 19.6% decrease in state and local public corporations due to a fall in dwelling investment.

The 2021-22 issue of Australian National Accounts: Distribution of Household Income, Consumption and Wealth was released on 13 December 2022. This publication contains results that integrate ABS micro and macro data to produce distributional information on household income, consumption and wealth, consistent with the Australian System of National Accounts concepts and aggregates.

The 2021-22 issue of Estimates of Industry Multifactor Productivity was released on 13 December 2022. 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.