Quarterly estimates of key economic flows in Australia, including gross domestic product (GDP), consumption, investment, income and saving
Unless otherwise stated all figures are in seasonally adjusted, chain volume measures.
The reference year for chain volume measures is 2020-21.
| Mar 22 to Jun 22 | Jun 22 to Sep 22 | Sep 22 to Dec 22 | Dec 22 to Mar 23 | Mar 23 to Jun 23 | Through the year, Jun 22 to Jun 23 | ||
|---|---|---|---|---|---|---|---|
| Chain volume GDP and related measures (b) | |||||||
| GDP | 0.7 | 0.7 | 0.7 | 0.4 | 0.4 | 2.1 | |
| GDP per capita (c) | 0.3 | 0.1 | 0.1 | -0.3 | -0.3 | -0.3 | |
| Gross value added market sector (d) | 1.0 | 0.8 | 0.5 | 0.2 | 0.4 | 2.0 | |
| Real net national disposable income | 0.9 | -1.2 | 1.5 | 1.4 | -1.4 | 0.2 | |
| Productivity | |||||||
| GDP per hour worked | -3.1 | 0.2 | -1.3 | -0.4 | -2.0 | -3.6 | |
| Real unit labour costs | -1.8 | 2.5 | 0.1 | - | 3.2 | 5.8 | |
| Prices | |||||||
| GDP chain price index (original) | 4.0 | 0.1 | 0.5 | 1.7 | -2.2 | 0.1 | |
| Terms of trade | 6.0 | -7.3 | -0.5 | 2.7 | -7.9 | -12.7 | |
| Current price measures | |||||||
| GDP | 4.4 | 0.5 | 2.1 | 2.2 | -1.2 | 3.6 | |
| Household saving ratio | 8.1 | 7.2 | 4.4 | 3.6 | 3.2 | na | |
na not available
a. Change on preceding quarter; last column shows the change between the current quarter and the corresponding quarter of the previous year.
b. Reference year for chain volume measures and real income measures is 2020-21.
c. Population estimates are as published in National, state and territory population and ABS projections.
d. ANZSIC divisions A to N, R and S. See Glossary - Market sector.
Gross Domestic Product (GDP) rose 0.4%, the seventh consecutive rise. Exports and investment were the primary contributors to GDP growth this quarter, partly offset by changes in inventories.
The Australian economy grew by 3.4% in 2022-23, above the 10-year pre-pandemic average of 2.6%. The growth reflected a strong recovery in demand following the COVID-19 Delta-variant lockdowns in September quarter of the previous financial year. Through the year growth was lower at 2.1%. This measure compares the economy between June quarter 2022 and June quarter 2023, excluding part of the recovery from the lockdowns.
Nominal GDP fell 1.2%. The GDP implicit price deflator (IPD) declined 1.5%, driven by the largest fall in the terms of trade since June quarter 2009. Domestic prices increased 1.2%.
The terms of trade fell 7.9% due to export prices (-8.2%). A warmer northern hemisphere winter resulted in high European inventories of coal and liquefied natural gas, reducing demand and prices for these commodities. Prices for iron ore also fell due to reduced demand from China’s construction and manufacturing industries. Import prices recorded a small fall of 0.3%.
Growth in domestic demand prices remained elevated, but declined off their peak in mid 2022 following an easing in demand and global supply chain congestion. Prices for household consumption increased 1.2%, with a strong contribution from rental prices in the tight rental market. Prices for capital investment (+1.3%) also rose, impacted by the depreciation of the Australian dollar.
Domestic final demand contributed 0.7 percentage points to GDP growth, driven by investment.
Investment contributed 0.5 percentage points to growth, led by public investment which increased 8.2%. Private investment rose 0.6%.
Consumption contributed 0.1 percentage points to GDP. Growth in household consumption (+0.1%) slowed further, but remained positive. Government expenditure grew 0.4%.
Net trade contributed 0.8 percentage points, with a rise in exports (+4.3%) partly offset by a smaller increase in imports (+0.7%).
Changes in inventories was the predominant detractor from GDP growth. Inventories recorded a $3.4 billion run down this quarter, and partly facilitated the rise in exports. Wholesale trade inventories declined as grain inventories were exported following recent harvests. The clearing of quarantine backlogs for motor vehicles and other equipment also contributed to the decline, resulting in deliveries to households and businesses this quarter. Mining inventories were run down, supporting exports amid production disruptions for some commodities.
Total public investment increased 8.2% this quarter. While growth was boosted by second-hand asset transfers from the private sector, new investment was also strong at 5.5%. This reflected ongoing work on large-scale transport, health and education projects across a number of states.
New private investment increased 1.6%. New machinery and equipment investment rose 4.3%, boosted by the improved availability of motor vehicles and other equipment following supply chain disruptions and processing backlogs at ports in prior quarters.
Ownership transfer costs rose 3.9%, the first increase since September quarter 2021. The increased activity in the housing market followed recent increases in dwelling prices and heightened demand supported by population growth.
Dwelling investment fell 0.2%. Increased activity in the construction of apartments and townhouses was offset by a continued decline in demand for renovations. House construction fell, with ongoing constraints on labour further extending average completion times.
Household spending (+0.1%) slowed further this quarter, impacted by pressures on household budgets from inflation and interest rate rises. These pressures have resulted in a continued shift away from discretionary spending towards essential categories.
Discretionary spending fell 0.5%, the third consecutive fall. The decline was led by recreation and culture (-2.5%) and furnishings and household equipment (-2.5%). Spending on transport services (+3.2%) and hotels, cafes and restaurants (+0.2%) continued to increase, but at a subdued rate compared to prior quarters. Partly offsetting the weakness was purchase of vehicles (+5.8%), with vehicles delivered to households this quarter after quarantine delays at ports.
Essential spending rose 0.5%, driven by rent and other dwelling services (+0.5%), electricity gas and other fuel (+2.2%) and insurance and other financial services (+0.6%). The rise in electricity, gas and other fuel reflected stronger demand for heating following a cooler than usual Autumn.
Exports of goods and services rose 4.3%, with both goods and services contributing. Services exports rose 12.1%, driven by education and personal travel. Education-related travel was supported by high levels of international students in the country. Personal travel was led by an increase in Chinese tourism to Australia following their easing of restrictions from late 2022.
Exports of goods increased 2.5% driven by mining commodities. Improved weather conditions led to increased coal production, which, combined with a run down in inventories supported a strong rise in coal exports. Increased demand for Australian crude oil drove a rise for other mineral fuels.
Imports of goods and services rose 0.7%. Imports of services (+4.7%) drove the rise, partly offset by goods (-0.2%). Imports of travel services increased 11.2%, with travel to northern hemisphere destinations increasing as Australians took greater advantage of the shoulder season.
The decline in imports of goods was driven by telecommunications equipment, with the volume of imports returning to more usual levels following the arrival of backlogged orders in the March quarter. This was partly offset by stronger imports of fuels and lubricants.
Gross value added (GVA) rose 0.5% this quarter.
Construction increased 2.2% and was strongest contributor to GVA growth. Construction services (+3.5%) drove the rise after three consecutive falls, reflecting increased activity supporting both private and public sector construction works.
Rental, hiring and real estate (+2.6%) rose predominantly reflecting higher levels of activity in the residential and commercial property markets. The hiring of machinery for construction projects also supported growth.
Mining partly offset the rises, declining by 1.3%. Iron ore production was adversely affected by Cyclone Ilsa in April. Oil and gas extraction was also impacted by production disruptions at a number of sites. Coal partly offset the falls, increasing 5.8% with drier conditions and less maintenance activity driving increased production.
Gross operating surplus (GOS) fell 4.5%, the largest decline since March quarter 1991. The weakness was driven by private non-financial corporations (-8.6%), as profits for the Mining industry declined strongly in line with lower prices for key export commodities. Non-mining industries also contributed to the weakness, including Wholesale Trade which experienced lower levels of demand and output prices.
Partly offsetting the falls were Dwellings GOS owned by persons (+3.5%) and GOS for financial corporations (+1.6%). Dwellings GOS grew at its highest rate since September quarter 2007, consistent with increased rental prices in the tight rental market. Financial corporations GOS increased as banks’ margins widened following a 50 basis point increase to the cash rate over the quarter. Growth was also supported by fixed rate home loans expiring and rolling onto higher variable rates.
Compensation of employees (COE) rose 1.6% as tight labour market conditions persisted in the June quarter. Sustained wages, employment and hours worked growth over the last year drove a 10.1% rise in COE in 2022-23, the largest since 1989-90.
Growth in private COE (+1.8%) reflected increased employment and higher pay rises offered by businesses to attract and retain staff. Public COE grew 1.2% as new enterprise agreements were entered into across a number of states.
The household saving ratio declined from 3.6% to 3.2%, the seventh consecutive fall and the lowest level since June 2008. Savings fell as the rise in nominal household consumption outweighed a softer rise in gross disposable income.
Household gross income rose 1.8% as income from labour increased 1.6%. Non-labour income also grew as interest received on deposits rose 10.7% driven by interest rate rises over the quarter. Dwellings GOS owned by persons also contributed to growth in non-labour income due to higher rental income.
Household income payable rose 3.7%. Interest payable on dwellings rose 10.9%. Income tax rose 2.2%, reflecting growth in wages, hours worked and returns on investment income.
| Mar 23 to Jun 23 | Jun 22 to Jun 23 | Mar 23 to Jun 23 | |||
|---|---|---|---|---|---|
| % change | % change | % points contribution to GDP growth | |||
| Final consumption expenditure | |||||
| General government | 0.4 | 1.4 | 0.1 | ||
| Households | 0.1 | 1.5 | 0.1 | ||
| Total final consumption expenditure | 0.2 | 1.4 | 0.1 | ||
| Gross fixed capital formation | |||||
| Private | |||||
| Dwellings | -0.2 | -1.1 | - | ||
| Ownership transfer costs | 3.9 | -14.2 | 0.1 | ||
| Non-dwelling construction | -2.9 | 11.1 | -0.1 | ||
| Machinery and equipment | 4.2 | 6.5 | 0.2 | ||
| Cultivated biological resources | -2.4 | 0.6 | - | ||
| Intellectual property products | 2.2 | 6.2 | - | ||
| Public | 8.2 | 8.8 | 0.4 | ||
| Total gross fixed capital formation | 2.4 | 4.7 | 0.5 | ||
| Changes in inventories | na | na | -1.1 | ||
| Gross national expenditure | -0.4 | 1.2 | -0.4 | ||
| Exports of goods and services | 4.3 | 9.8 | 1.0 | ||
| Imports of goods and services | 0.7 | 4.4 | -0.1 | ||
| Statistical discrepancy (E) | na | na | -0.1 | ||
| Gross domestic product | 0.4 | 2.1 | 0.4 | ||
- nil or rounded to zero (including null cells)
na not available
Income estimates are in seasonally adjusted current prices
| Mar 23 to Jun 23 | Jun 22 to Jun 23 | Mar 23 to Jun 23 | ||
|---|---|---|---|---|
| % change | % change | % points contribution to GDP growth | ||
| Compensation of employees | 1.6 | 9.6 | 0.7 | |
| Gross operating surplus | ||||
| Private non-financial corporations | -8.6 | -6.8 | -2.1 | |
| Other (a) | 2.4 | 8.1 | 0.3 | |
| Gross mixed income | -2.7 | -8.8 | -0.2 | |
| Taxes less subsidies on production and imports | -1.1 | 6.3 | -0.1 | |
| Statistical discrepancy (I) | na | na | 0.1 | |
| Gross domestic product | -1.2 | 3.6 | -1.2 | |
- nil or rounded to zero (including null cells)
na not available
a. Includes Public non-financial corporations, Financial corporations, General government and Dwellings owned by persons.
| Mar 23 to Jun 23 | Jun 22 to Jun 23 | Mar 23 to Jun 23 | |
|---|---|---|---|
| % change | % change | % points contribution to GDP growth | |
| Agriculture, Forestry and Fishing | 0.9 | -3.5 | - |
| Mining | -1.3 | 2.9 | -0.1 |
| Manufacturing | 0.7 | 0.3 | - |
| Electricity, Gas, Water and Waste Services | 2.9 | 0.2 | 0.1 |
| Construction | 2.2 | 4.3 | 0.2 |
| Wholesale Trade | -1.5 | 0.1 | -0.1 |
| Retail Trade | -0.1 | -0.9 | - |
| Accommodation and Food Services | 0.4 | 7.1 | - |
| Transport, Postal and Warehousing | 1.1 | 5.0 | - |
| Information Media and Telecommunications | 0.3 | 7.2 | - |
| Financial and Insurance Services | 0.2 | 0.6 | - |
| Rental, Hiring and Real Estate Services | 2.6 | 2.0 | 0.1 |
| Professional, Scientific and Technical Services | -0.3 | -0.7 | - |
| Administrative and Support Services | 1.8 | 6.3 | 0.1 |
| Public Administration and Safety | 0.5 | 2.8 | - |
| Education and Training | 0.4 | 1.6 | - |
| Health Care and Social Assistance | 0.9 | 2.0 | 0.1 |
| Arts and Recreation Services | 0.9 | 1.9 | - |
| Other Services | 1.2 | 4.6 | - |
| Ownership of dwellings | 0.5 | 1.8 | - |
| Taxes less subsidies on products | -1.1 | -3.4 | -0.1 |
| Statistical discrepancy (P) | na | na | - |
| Gross domestic product | 0.4 | 2.1 | 0.4 |
- nil or rounded to zero (including null cells)
na not available
| Mar 23 to Jun 23 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| NSW | Vic. | Qld | SA | WA | Tas. | NT | ACT | Aust.(b) | ||
| Final consumption expenditure | ||||||||||
| General government | 0.4 | 0.3 | 1.6 | 1.1 | -2.3 | -1.5 | -1.5 | 1.4 | 0.4 | |
| Households | 0.0 | -0.2 | 0.3 | 0.6 | 0.8 | -0.5 | 0.4 | 0.0 | 0.1 | |
| Gross fixed capital formation | ||||||||||
| Private | 2.3 | 0.1 | 1.4 | 2.6 | 1.7 | 2.6 | -5.7 | -1.6 | 0.6 | |
| Public | 7.2 | 12.2 | 8.9 | 7.5 | 3.0 | 2.1 | 5.9 | 4.0 | 8.2 | |
| State final demand | 0.8 | 0.7 | 1.3 | 1.3 | 0.4 | -0.2 | -1.0 | 0.8 | 0.7 | |
- nil or rounded to zero (including null cells)
a. Change on preceding quarter
b. Australia estimates relate to Domestic final demand.
The map shows quarterly volume measures of state final demand by state/territory.
New South Wales' state final demand increased 0.8% for the quarter.
Victoria's state final demand increased 0.7% for the quarter.
Queensland's state final demand increased 1.3% for the quarter.
South Australia's state final demand increased 1.3% for the quarter.
Western Australia's state final demand increased 0.4% for the quarter.
Tasmania's state final demand decreased 0.2% for the quarter.
Northern Territory's state final demand decreased 1.0% for the quarter.
Australian Capital Territory's state final demand increased 0.8% for the quarter.
There are revisions in this issue due to the incorporation of more up-to-date data and concurrent seasonal adjustment. There are also revisions to the HFCE Food estimates data cube, detailed below.
Due to the discovery of a processing error in the March quarter 2023 release of the HFCE Food Estimates Data Cube, the following series have been revised:
Please note that these changes are offsetting and do not revise the higher-level aggregate Bakery product: SUPC estimate in both current prices and chain volume measures.
In the March quarter 2020 issue of Australian National Accounts: National Income, Expenditure and Product, the ABS advised that the method used to produce seasonally adjusted estimates would be changed from the ‘concurrent’ method to the ‘forward factors’ method for series with significant and prolonged impacts from COVID-19. Trend estimates for all series were also suspended from June 2019 (inclusive).
Over the June quarter 2023, annual seasonal re-analysis of national accounts series was conducted. This process reviewed the seasonal factors in more detail than is possible during a quarterly processing cycle, including assessing the appropriateness of prior corrections. Revisions to seasonally adjusted estimates have occurred as part of this process.
Further details on the outcomes of this process are listed below.
Statistical revisions are carried out regularly in the Australian National Accounts to reflect the most current information and estimation methods. For most statistical releases the ABS will try to limit revisions to the most recent quarters. Periodically ABS needs to revise a longer time series of selected estimates, which is referred to as a “historical revision". Historical revisions are important for a number of reasons including improved data quality, to update classifications and to improve international comparability.
This year’s round of targeted historical revisions will be first published in:
The 2023 round of revisions will incorporate four major historical revision improvements:
The ABS will align the value of household final consumption expenditure (HFCE) on Rent with estimates from the 2021 Census for the period 2016-17 to 2020-21 (inclusive). The rent series in the National Accounts is updated every 5 years when the latest Census data is available. In the intervening years, rent estimates are indicators based on information about the number of dwellings in Australia from the Building Activity Survey (BACS) and information on rental price growth in capital cities only from the Consumer Price Index (CPI).
The ABS will reclassify payments and receipts related to the Victorian Capital Asset Charge (CAC) across impacted sectors. These changes bring the National Accounts in alignment with Government Finance Statistics as described in the April 2023 Government Finance Statistics 2021-22 annual publication.
The ABS will make improvements to the treatment of personal and loan dwelling balances, offset accounts, buy now, pay later services and the International Investment Financial Intermediation Services Indirect Measured (FISIM) model in Finance estimates, as well as incorporating new data sources.
The ABS groups individual businesses together by industry based on their predominant activity according to the Australian and New Zealand Standard Industrial Classification (ANZSIC) classification. The ABS routinely reviews the assigned ANZSIC classification of business entities to ensure they are in the correct industry for the purpose of ABS estimates. A targeted review of businesses in the software design and software publishing industries will result in some shifts of Gross Value Added (GVA) and Compensation of Employees (COE) between industry estimates in the National Accounts, particularly from ANZSIC 7000 Computer System Design and Related Services (or at a higher level from Division M Professional, Scientific and Technical Services) to ANZSIC 5420 Software Publishing (or at a higher level to Division J Information Media and Telecommunications).
The ABS has decided that the publication of Input Output Product Classifications (IOPC) estimates in the HFCE Food Estimates Data Cube will be discontinued starting from the September quarter 2023 release onwards. The publication of higher-level aggregates Supply Use Product Classification (SUPC) and Total Food will continue as usual. IOPC level estimates are available on an annual basis within the Australian National Accounts: Input-Output Tables.
If you have any questions or feedback about these changes, please contact National Accounts.
From the September quarter 2023, the publication of Input Output Product Classification estimates in the HFCE Food datacube will be discontinued. For further information regarding the changes, see the Revisions and changes section above.
The June quarter 2023 issue of Australian National Accounts: Finance and Wealth will be released on 28 September 2023. This publication includes the quarterly household balance sheets with an estimate of net worth. It also provides quarterly estimates of the financial flows and balance outstanding between sectors and various sub-sectors of the domestic economy and with the rest of the world. Other key estimates within the publication include the financial instrument markets, demand for credit by non-financial domestic institutional sectors during the quarter, and their corresponding levels of credit outstanding and quarterly sectoral capital accounts (current price).
The August 2023 issue of the Monthly Household Spending Indicator will be released on 5 October 2023. The experimental Monthly Household Spending Indicator is derived using aggregated, de-identified banks transactions data from some of Australia’s banking and financial institutions. The ABS transforms the banks transactions data in order to derive the Monthly Household Spending Indicator. As this data is not designed for statistical purposes, its scope varies from Australian National Accounts concept of household final consumption expenditure (HFCE) and the Retail Trade turnover estimates for retail businesses. The indicator should be considered experimental at this stage, as further enhancement to the transformation processes and methodology are expected in the future.
The 2022-23 issue of Australian System of National Accounts will be released on 27 October 2023. This publication provides detailed, annual estimates of Australia's national accounts. These include expenditure, income and production estimates of gross domestic product (GDP), productivity estimates, sectoral accounts (for households, financial and non-financial corporations, general government and the rest of the world), and additional aggregates dissected by industry.
The 2021-22 issue of Australian National Accounts: Supply Use Tables will be released on 27 October 2023. The Supply Use tables were introduced in the annual National Accounts in 1998 as an integral part of the annual compilation of the Australian System of National Accounts. They are used to ensure Gross Domestic Product is balanced for all three approaches (production, expenditure and income) and provide the annual benchmarks from which the quarterly estimates are compiled.
This release previously used catalogue number 5206.0.