Economy Slowing

Economy Slowing

Australian Bureau Of Statistics

Australian Economic Growth Slows

Victor P Taffa

Latest ABS figures show that GDP, in seasonally adjusted volume terms, grew 0.2% in the September Quarter 2010, after growing 1.1% in the June Quarter.

The growth was driven by a 0.6% increase in household expenditure and a 0.9% increase in gross fixed capital expenditure. This growth was partially offset by a strong fall in net exports the fall in net exports was due to a 2.4% fall in exports and a 0.5% fall in imports.

 

The industry that drove growth in the September Quarter was agriculture, forestry and fishing with an 18.5% increase in seasonally adjusted volume terms driven by strong crop forecasts.

SEPTEMBER KEY POINTS

KEY AGGREGATES

  • In trend terms, GDP increased 0.6% and Non-farm GDP increased 0.5% in the September quarter 2010. GDP per hour worked in the market sector rose 0.3% and the Terms of trade rose 1.6%.
  • In seasonally adjusted terms, GDP increased by 0.2% in the September quarter and Non-farm GDP fell 0.2%. The Terms of trade rose 0.8% and Real gross domestic income rose 0.3%.

EXPENDITURE ON GDP

  • In seasonally adjusted terms, the main positive contributors to expenditure on GDP were Household final consumption expenditure (0.3 percentage points), Private gross fixed capital formation (0.1 percentage points) and Public gross fixed capital formation (0.1 percentage points). The largest negative contributor was Net exports (-0.4 percentage points).

INDUSTRY GROSS VALUE ADDED

  • In seasonally adjusted terms, Agriculture (up 21.5%) contributed 0.4 percentage points to GDP growth driven largely by strong forecasts for grain crops.

SEPTEMBER KEY FIGURES

% change Jun qtr 10 to Sep qtr 10

% change Sep qtr 09 to Sep qtr 10


GDP (Chain volume measure)
Trend

0.6

2.8

Seasonally adjusted

0.2

2.7

Final consumption expenditure (Chain volume measure)
Trend

0.9

3.3

Seasonally adjusted

0.6

3.5

Gross fixed capital formation (Chain volume measure)
Trend

0.1

5.6

Seasonally adjusted

0.9

6.8

GDP chain price index
Original

0.7

6.6

Terms of trade
Seasonally adjusted

0.8

24.1

Real net national disposable income
Trend

2.5

9.5

Seasonally adjusted

-0.4

7.6