GDP Up 0.5 % June Quarter 2016

GDP Up 0.5 % June Quarter 2016

Australian Bureau Of Statistics

Economy Grows 0.5 % In June Quarter

Victor P Taffa

Australia’s economic growth slowed in the June quarter, according to data released by the Australian Bureau of Statistics (ABS).

Gross Domestic Product (GDP) grew 0.5 % in seasonally adjusted terms in the June quarter 2016, down on the growth of 1.0 %.

The economy experienced in the March quarter. GDP grew 3.3 % through the year bringing the annual growth for the 2015-16 financial year to 2.9 %.

GDP growth in the June quarter was driven by domestic final demand, which rose 0.6 % this quarter, supported by ongoing growth in household and public consumption.

Total investment was flat in the quarter, with the continued reduction in engineering construction associated with the mining sector offset by growth in public investment.

International trade detracted from growth in the quarter due to strong growth in imports and a slowing in the rate of growth in exports. After strong growth in the March quarter, production in the mining industry was lower in seasonally adjusted terms in the June quarter.

Income growth was supported by an increase in profits of non-financial corporations associated with an improvement in Australia’s terms of trade.

The terms of trade growth of 2.3 % in seasonally adjusted terms was the first increase since December 2013. Compensation of employees rose by a modest 0.5 % in the June quarter to be 3.1 % higher through the year.

This is in line with the modest through the year growth observed in hours worked (0.7 %) and the Wage Price Index (2.1 %) previously published by the ABS.