Australian National Accounts: National Income, Expenditure and Product

Household FCE rose 1.1%, driven by a:

• 5.5% rise in hotels, cafes and restaurants
• 13.9% rise in transport services
• 10.1% rise in purchase of vehicles
• 3.5% rise in operation of vehicles
• 3.0% rise in clothing and footwear

The increase was partly offset by a:

• 1.1% fall in recreation and culture
• 0.8% fall in food
• 3.3% fall in electricity, gas and other fuel
• 1.5% fall in furnishings and household equipment

General government FCE rose 0.1%, driven by a:

• 0.8% rise in state and local
• 0.8% rise in national defence

The increase was partly offset by a: 

• 1.0% fall in national non-defence

Private investment increased 0.8%, driven by a:

• 8.6% rise in non-dwelling construction
• 1.0% rise in dwellings

The increase was partly offset by a:

• 11.2% fall in ownership transfer costs
• 2.7% fall in machinery and equipment

Public investment decreased 3.4%, driven by a:

• 2.9% fall in state and local general government
• 14.9% fall in national defence
• 8.5% fall in national non-defence

The decrease was partly offset by a:

• 2.1% rise in state and local public corporations
• 4.6% rise in commonwealth public corporations

Total inventories rose $2,666m following a rise of $1,549m in the June quarter. The largest contributors to the rise were a:

• $2,024m rise in Mining 
• $1,764m rise in Retail Trade
• $206m rise in Other non-farm industries
• $59m rise in Manufacturing

This rise was partly offset by a:

• $890m fall in Wholesale Trade 
• $360m fall in Public Authorities 
• $137m fall in Farm

Exports of goods and services rose 2.7%, driven by a:

• 3.7% rise in mineral ores
• 18.6% rise in travel services
• 16.1% rise in other rural
• 7.9% rise in non-monetary gold
• 2.9% rise in other services

The rise was partly offset by a:

• 10.2% fall in other mineral fuels
• 9.8% fall in coal
• 7.0% fall in other non-rural and sugar

Imports of goods and services rose 3.9%, driven by a:

• 58.0% rise in travel services
• 13.0% rise in non-industrial transport equipment
• 8.5% rise in fuels and lubricants
• 8.2% rise in parts for other capital goods
• 11.3% rise in industrial transport equipment

The rise was partly offset by a:

• 4.2% fall in consumption goods nes
• 10.8% fall in capital goods nes
• 2.8% fall in processed industrial supplies nes

Compensation of employees rose 3.2%, private sector COE rose 3.4% and public sector COE rose 2.4%. Private sector COE rose in line with the increasingly tight labour market with ongoing labour shortages as reflected in the strong growth in the Wage Price Index. Commonwealth Government policy changes on the minimum wage and superannuation guarantee percentage also contributed to the rise. 

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

• 4.0% rise in WA
• 3.6% rise in NSW
• 2.7% rise in Victoria

Private non-financial corporations GOS decreased 4.7%, driven by a:

• fall in Mining driven by large falls in price for coal and metal ores
• fall in Manufacturing due to weaker sales and higher energy input costs

Partly offset by a:

• rise in Wholesale Trade due to an increase in sales and a moderation in cost pressures

Other sectors GOS rose 1.9%, driven by a:

• 4.9% rise in financial corporations
• 1.6% rise in dwellings owned by persons

Partly offset by a:

• 8.6% fall in public non-financial corporations

Taxes less subsidies on production and imports rose 4.3%. Taxes on production and imports rose 1.7% driven by a rise in excise tax and taxes on international trade, partly offset by a fall in taxes on financial and capital transactions. The rise in fuel excise tax was driven by increased demand and a rise in import volumes of petroleum. Subsidies on production fell 13.1% driven by a reduction in state and local subsidies relating to transport services. 

• This decrease was driven by a 9.0% fall in Forestry and Fishing due to falls in agriculture support services. This was partly offset by a rise of 0.9% in Agriculture driven by increased livestock production, particularly for lamb.

This increase was driven by a:

• 3.0% rise in Iron Ore Mining, due to improved weather in key production areas and new supply.  
• 1.7% rise in Exploration and Mining Support Services following a fall in the June quarter 2022. 

This was partly offset by a:

• 0.2% fall in Coal Mining as wet weather on the East Coast continues to impact production.
• 3.3% fall in Oil and Gas Extraction as production was interrupted by maintenance activity. 
• 0.8% fall in Other mining with falls across key commodities.

This decrease was driven by a: 

• 2.6% fall in Other Manufacturing driven by decreased output in paper and furniture manufacturing.  
• 2.0% fall in Food, Beverage and Tobacco Products as beverage manufacturing decreased following a strong result in the June quarter. 
• 2.0% fall in Machinery and Equipment due to material shortages.

This was partly offset by a:

• 0.7% rise in Metal Products following a fall in the June quarter due to unplanned maintenance activities.
• 0.2% rise in Petroleum, Coal, Chemical and Rubber Products. 

This increase was driven by a:

• 2.0% rise in Water Supply and Waste Services, with a rise in water services following a fall in the June quarter. 

This was partly offset by a:

• 9.1% fall in Gas Supply as usage eased following the early onset of cold weather, which drove higher consumption in the June quarter 2022. 
• 0.2% fall in Electricity Supply. 

All subdivisions rose as supply shortages eased, and new projects commenced. The increase was driven by a: 

• 2.6% rise in Construction Services as supply constraints eased. 
• 2.8% rise in Heavy and Civil Engineering Construction due to new commencements on transportation infrastructure and energy projects.
• 1.1% rise in Building Construction driven by a rise in private non-residential and residential building.

This increase was driven by:

• Basic Material Wholesaling with petroleum wholesalers noting increased supply and demand for fuel. 
• Motor Vehicle and Motor Vehicle Parts Wholesaling as supply impacts eased as imports rose.

This increase was driven by:

• Motor Vehicle and Motor Vehicle Parts Retailing as vehicle supply constraints eased this quarter and fuel retailing increased.
• Other Store Based Retailing due to resilient consumer demand for clothing and footwear, and department stores retailing. 

This was partly offset by:

• A fall in Food Retailing as supermarket volumes eased in line with higher food prices. 

This increase was driven by:  

• Food and Beverage Services with sustained demand for cafes, restaurants, and hospitality venues.   
• Accommodation Services driven by strong domestic tourism.

This increase was driven by a: 

• 4.2% rise in Transport, Postal and Storage Services driven by increased activity at airports and toll road operations.
• 25.2% rise in Air and Space Transport due to increased international travel.
• 3.7% rise in Rail, Pipeline and Other Transport driven by recreational transport operators.

 This was partly offset by a:

• 0.8% fall in Road Transport as volumes eased slightly but remained at high levels.

This increase was driven by a:

• 2.3% rise in Other Information and Media Services driven by Publishing, and Internet Publishing, Broadcasting and ISP Services.

This was partly offset by a: 

• 0.4% fall in Telecommunication Services, driven by a reduction in household demand. 

This increase was driven by a: 

• 0.3% rise in Finance due to strength in business loans. Deposit balances also contributed to the rise.
• 0.1% rise in Other Financial and Insurance Services driven by superannuation services. 

This decrease was driven by a: 

• 1.4% fall in Property Operators and Real Estate Services driven by lower levels of housing market activity and prices. 

This was partly offset by a:

• 3.9% rise in Rental and Hiring Services driven by industrial machinery and equipment hire. 

This increase was driven by a:

• 2.2% rise in Other Professional, Scientific and Technical Services due to continued demand for consultancy and accounting services.

This was partly offset by a: 

• 0.3% fall in Computer System Design and Related Services.  

• Administrative Services rose due to increased demand for travel agents, employment agencies and labour supply businesses.

• Health Care and Social Assistance fell following a rise of 2.3% in the June quarter. Demand for allied health services remained strong, but was offset by weakness in public health. 

• Arts and Recreation Services fell as demand decreased for Gambling Activities and Creative and Performing Arts.

• The rise was driven by Personal and Other Services as demand eased following three quarters of consecutive growth.

Total final consumption expenditure increased 0.9%, driven by a:

• 0.9% increase in household consumption. Leading the rises were hotels, cafes and restaurants (+6.4%), transport services (+10.9%) and purchase of vehicles (+9.2%) reflecting increased discretionary spending. Recreation and culture (-3.5%) partially offset the increase due to weakness in gambling services and audio-visual equipment. 
• 1.1% increase in government spending, led by a 2.7% increase in state and local expenditure reflecting growth in employee expenses in the health sector and a rise in use of goods and services due to flood assistance and repairs.  National expenditure (-0.8%) partly offset the rise due to a decrease in non-defence expenditure as COVID-19 related spending declined. 

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

• 5.8% increase in non-dwelling construction led by strength in new building construction and a smaller increase in new engineering.
• 2.9% increase in machinery and equipment due to increased spending from the construction industry for vehicles and excavators. 

Partly offset by a:

• 15.5% decrease in ownership transfer costs due to the continued slowdown in the residential property market.

Public gross fixed capital formation decreased 1.7%, driven by a:

• 7.5% decrease in public corporations led by weakness in state and local investment in utility and recreational infrastructure. 

Partly offset by a:

• 0.3% increase in general government led by a rise in state and local expenditure (3.2%) with increased investment in transport infrastructure. 

Total final consumption expenditure increased 0.5%, due to a:

• 1.3% increase in household consumption. There was an increase in discretionary spending on goods and services with hotels, cafes and restaurants (+6.0%), purchase of vehicles (+11.2%), and clothing and footwear (+5.1%) leading the rises. Furnishings and household equipment (-3.0%) partly offset the rise.

Partly offset by a:

• 1.4% decrease in government expenditure led by a fall in state and local government (-1.6%) due to reduced health related spending on the use of goods and services and social benefits such as rapid antigen tests. 

Private gross fixed capital formation increased 0.2%, driven by a:

• 15.0% increase in non-dwelling construction due to a strong increase in new engineering construction and fewer disposals of second-hand assets to the public sector. 

Partly offset by a:

• 7.9% decrease in machinery and equipment led by the reduction of spending on supply chain projects and fewer vehicle purchases by businesses.
• 10.4% decrease in ownership transfer costs as a result of the slowdown in the residential property market.

Public gross fixed capital formation decreased 6.8%, driven by a:

• 10.9% decrease in general government with weakness in state and local (-9.7%) due to fewer second-hand assets acquired from the private sector this quarter. This was partially offset by strength in health and education building investment.

Partly offset by a:

• 14.2% increase in total public corporations led by strength in state and local (11.7%) with a ramp up in work done on transport infrastructure.

Total final consumption expenditure increased 0.7%, driven by a: 

• 0.6% increase in household consumption due increased spending on discretionary goods and services. The rise was led by strength in purchase of vehicles (+14.0%), hotels, cafes and restaurants (+3.8%), operation of vehicles (+6.4%) and transport services (+12.3%). Electricity, gas and other fuel (-33.0%) partly offset the rise due to the Cost of Living Rebate for Households.
• 0.9% increase in government expenditure, as state and local expenditure rose (+2.2%) primarily in social benefits to households due to the government’s Cost of Living Rebate for Households. There were also increases in state and local employee expenses and health related use of goods and services.

Private gross fixed capital formation rose 2.4%, driven by a:

• 11.3% rise in total non-dwelling construction led by new buildings, renewable energy projects and fewer disposals of second-hand assets to the public sector.

Partly offset by a:

• 8.9% fall ownership transfer costs as a result of the falling activity in the residential property market.

Public gross fixed capital formation fell 5.1% driven by a:

• 8.1% decrease in general government with a decrease in both national (-17.2%) and state and local (-5.5%).

Partly offset by a:

• 7.1% increase in total public corporations led by strength in state and local (5.5%) predominantly due to fewer sales of buildings this quarter.

Total final consumption expenditure increased 0.4%, driven by a:

• 1.5% increase in household consumption. Discretionary spending led the growth with rises in both recreation and culture (+2.6%) and hotels, cafes and restaurants (+3.2%). Transport services rose strongly (+14.0%) benefitting from increased spending on tourism. 

Partly offset by a:

• 2.2% decrease in government expenditure led by a 3.5% fall in state and local. This was due to decreased COVID-19 related expenditure with the use of goods and services for health and the provision of rapid antigen tests (RATs) to households both falling. 

Private gross fixed capital formation increased 0.6%, driven by a:

• 4.3% increase in total non-dwelling construction primarily due to new engineering construction projects.
• 2.9% increase in total machinery and equipment led by the purchases of vehicles by small businesses.

Partly offset by a:

• 4.3% decrease in total dwellings, driven by a decline in alterations and additions and less work on houses as projects associated with HomeBuilder are completed.
• 4.7% decrease in ownership transfer costs as a result of the cooling housing market.

Public gross fixed capital formation fell 6.9%, driven by a:

• 8.5% decrease in state and local general government as new education building and infrastructure projects approached completion.

Partly offset by a:

• 2.9% increase in state and local public corporations led by strength in utilities infrastructure.

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

• 2.0% increase in household consumption. Leading the rise was transport services (+30.3%) as travel continued to rebound after borders reopened in the March quarter. Increased expenditure on electricity, gas and other fuel (+38.4%) follows a fall in the previous quarter (-44.4%) which was impacted by the Western Australian Government's Household Electricity Credit. Also contributing to the rise were hotels, cafes and restaurants (+4.2%) and health (+3.5%).
• 0.2% increase in government expenditure driven by a rise of 0.7% in state and local spending led by strength in employee expenses across a range of departments and agencies.

Private gross fixed capital formation decreased 1.7%, due to a:

• 10.1% fall in total machinery and equipment due to reduced investment by the Mining industry.
• 3.4% fall in total dwellings due to on-going material and labour shortages and increased costs.
• 2.2% fall in intellectual property products due to weakness in mineral and petroleum exploration.

Partly offset by a:

• 5.9% increase in total non-dwelling construction driven by increased mining investment. 

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

• 7.7% increase in state and local general government due to a rise in spending on health buildings and new road infrastructure.

Partly offset by a:

• 18.5% decrease in national general government. 

Total final consumption expenditure increased 0.9%, due to a:

• 1.1% increase in household consumption. Leading the rise were hotels, cafes and restaurants (+9.9%) and transport services (+16.7%) reflecting strong tourism spending. Also contributing to the rise was a rebound in purchase of vehicles (+7.1%). 
• 0.4% increase in government expenditure driven by strength in state and local (+1.3%) government as the use of goods and services rose. 

Private gross fixed capital formation increased 4.7%, driven by a:

• 16.0% increase in total machinery and equipment driven by spending on transport vehicles and equipment across several industries.
• 4.4% increase in total dwellings reflecting a rebound in new housing construction, after three quarters of falls.

Partly offset by a: 

• 7.7% decrease in ownership transfer costs, reflecting declines in housing market activity.
• 4.1% decrease in total non-dwelling construction driven by falls in new building investment as existing projects near completion. 

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

• 8.1% rise in state and local general government due to increased spending on road infrastructure projects.
• 8.7% increase in state and local public corporations due to a rise in investment on utilities.

Total final consumption expenditure increased 2.4%, driven by a:

• 3.7% increase in government expenditure, driven by a 6.6% increase in state and local expenditure reflecting strength in both non-employee and employee expenses.
• 1.2% increase in household consumption driven by rises in hotels, cafes and restaurants (+7.4%), transport services (+11.8%), operation of vehicles (+5.7%) and health (+4.2%), with the strength in discretionary service categories reflecting the strong tourism spend.

Private gross fixed capital formation increased 3.2%, driven by a: 

• 7.6% increase in non-dwelling construction led by strength in both new engineering construction and new building construction.

Partly offset by a:

• 10.4% decrease in total machinery and equipment due to reduced expenditure by the Mining industry. 
• 3.4% decrease in total dwellings due to falls in alterations and additions.

Public gross fixed capital formation increased 4.7%, driven by a:

• 4.9% increase in state and local general government due to increased spending on road infrastructure projects.
• 16.8% increase in state and local public corporations driven by increased investment in utilities.

Total final consumption expenditure increased 0.5%, driven by a:

• 1.8% increase in household consumption due to rises in hotels, cafes and restaurants (+8.4%), transport services (+13.4%) and recreation and culture (+1.9%) reflecting increased spending on discretionary services. Operation of vehicles (+3.8%) and purchase of vehicles (+9.2%) added to the rise. 

Partly offset by a:

• 0.4% decrease in government expenditure due to a 1.0% fall in state and local led by weakness in social benefits to households with less spending on rapid antigen tests (RATs). 

Private gross fixed capital formation decreased 5.8%, driven by a:

• 19.6% decrease in total non-dwelling construction driven by a fall in new building construction.
• 21.1% decrease in total machinery and equipment due to a decrease in purchases of IT equipment and vehicles.

Partly offset by a:

• 3.8% increase in total dwellings led by strength in work done on alterations and additions and other dwellings such as apartments and townhouses.

Public gross fixed capital formation increased 6.2%, driven by a:

• 385.5% increase in state and local public corporations reflecting a rise in infrastructure investment.
• 3.3% increase in national general government expenditure due to increased spending on machinery and equipment.

The 2021-22 issue of the Australian System of National Accounts was released on 28 October 2022. 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 2020-21 issue of the Australian National Accounts: Supply Use Tables was released on 28 October 2022. 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.

The 2020-21 issue of Estimates of Industry Level KLEMS Multifactor Productivity was released on 15 November 2022. Since 2016, the ABS has published estimates of industry level KLEMS MFP for the 16 market sector industries. The term KLEMS represents the five input categories - Capital (K), Labour (L), Energy (E), Materials (M) and Services (S). By explicitly identifying the role of intermediate inputs in the production process, KLEMS facilitates a more rigorous analysis of the determinants of output growth at the industry level.

The 2021-22 issue of the Australian National Accounts: State Accounts was released on 18 November 2022. This publication contains state and territory estimates of gross domestic product (referred to as gross state product (GSP)) and its components, in current price and chain volume terms, from 1989-90 onwards. Gross state product is estimated using the expenditure, income, and production approaches. The estimates in this publication are consistent with those published for Australia in the Australian System of National Accounts.

The October 2022 issue of the Monthly Household Spending Indicator was released on 6 December 2022. 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.