STATE ACCOUNTS

STATE FINAL DEMAND

State final demand in Western Australia (trend chain volume terms) has slowed steadily over the last three quarters, from a growth of 3.2% ($923 million) in the March quarter 2007, decelerating by 1.2% ($383 million) or $31,249 million in the December quarter 2007. Western Australia's increase of 1.2% in the current quarter was the third highest increase among the states and territories, behind Tasmania (up 1.6%) and Victoria (up 1.4%). Nationally, domestic final demand grew by 1.1%.

In seasonally adjusted chain volume terms, Western Australia's state final demand rose 1.5% ($459 million) to $31,206 million in the December quarter 2007, higher than the increase of 0.5% recorded in the previous quarter. The rise was attributable to final consumption expenditure, with household consumption up 2.4%($345 million) and general government consumption up 1.8% ($70 million). Growth was also recorded in the private gross fixed capital formation, with business investment increasing in machinery and equipment (up 4.9% or $155 million) and dwellings (up 1.5% or $34 million). Detracting from growth in the December quarter 2007 were falls in non-dwelling construction (down 4.0% or $180 million), intangible fixed assets (down 4.2% or $37 million) and ownership transfer costs (down 1.7% or $10 million).