In Business

Australian Bureau Of Statistics

Economy Grew 0.4 % In September Quarter

Victor P Taffa

Australian economy grew 0.4 % in seasonally adjusted chain volume terms in the September quarter 2019 and 1.7 % through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.

“Economy has continued to grow however the rate of growth remains well below the long run average.” ABS Chief Economist Bruce Hockman said.

 

Net exports contributed 0.2 percentage points to growth this quarter. Domestic final demand remained subdued contributing 0.2 percentage points. Government spending was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.

Household sector remained relatively subdued, with dwelling investment recording its fourth consecutive decline with a fall of 1.7 % during the quarter. Household expenditure increased 0.1 %, with weakness in spending on discretionary goods and services.

Household saving ratio rose to 4.8.

“Reduction to tax payable did not translate to a rise in discretionary spending, which led to a visible impact to household saving.” Mr. Hockman said.

Rise in household gross disposable income was driven by a decline in income tax payable and interest paid on dwellings as well as continued rises in compensation of employees.

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