Economy Grows By 0.9 % In June Quarter 2018

Economy Grows By 0.9 % In June Quarter 2018

Australian Bureau Of Statistics

Economy Grew 0.9 % In June Quarter

Victor P Taffa

Australian economy grew 0.9 % in seasonally adjusted chain volume terms in the June quarter 2018, according to figures released by the Australian Bureau of Statistics (ABS) today.

“Growth in domestic demand accounts for over half the growth in GDP, and reflected strength in household expenditure.” ABS Chief Economist Bruce Hockman said.

 

Domestic demand increased 0.6 % for the quarter, driven by a 0.7 % growth in household consumption, with increased expenditure on both discretionary and non-discretionary goods and services.

General government final consumption expenditure increased 1.0 % in the June quarter. Public investment remained at elevated levels reflecting continued work on infrastructure projects across the nation.

Investment in new dwellings increased 3.6 % for the quarter. with strength observed in Victoria and South Australia. This strength was reflected in the Construction industry, which grew 1.9 % for the quarter.

Compensation of employees (COE) grew 0.7 % for the quarter due to a rise in the number of wage and salary earners and wage rates. COE growth was prominent in the Health Care and Social Assistance industry.

Moderate growth in household disposable income coupled with strength in household consumption resulted in a decline in the household saving ratio to 1.0 %, recording its lowest rate since December 2007.