JUNE KEY FIGURES

FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES
			Non-financial corporations		Financial corporations		General government		Household		Total National		Rest of world
			$b		$b		$b		$b		$b		$b
Financing resources
	Net saving (a)		5.2		3.8		14.1		-8.9		14.1		11.9
	plus Consumption of fixed capital		39.4		2.9		9.6		29.7		81.6		-
	Gross saving		44.5		6.7		23.7		20.8		95.8		11.9
	plus Net capital transfers		0.4		-		-1.2		0.6		-0.2		0.2
	less Statistical discrepancy (b)		-		-		-		-		-12.6		-
	Total financing resources		44.9		6.7		22.5		21.5		108.2		12.1
Uses of financing (Investment)
	Capital formation
		Gross fixed capital formation	52.9		3.1		20.7		44.1		120.7		-
		plus Change in inventories	0.3		-		0.2		-1.0		-0.5		-
		plus Net acquisition of non-produced non-financial assets	-0.1		-		-		0.1		-		-
		Total capital formation	53.0		3.1		20.9		43.2		120.2		-
	plus Financial investment
		Acquisition of financial assets	-9.3		45.0		17.8		55.3		13.6		26.3
		less Incurrence of liabilities	18.8		55.8		17.5		29.4		26.3		13.6
		Net financial investment (Net lending (+) / net borrowing (-))	-28.1		-10.8		0.4		25.9		-12.7		12.7
	less Net errors and omissions		-20.0		-14.5		-1.2		47.6		-0.7		0.7
	Total investment		44.9		6.7		22.5		21.5		108.2		12.0
- nil or rounded to zero (including null cells) (a) Net saving for the Rest of world is the balance on the external income account. (b) The statistical discrepancy is not able to be distributed amongst the sectors.

In the June quarter 2018, non-financial corporations funded their investments of $53.0b through both gross saving of $44.5b; and net borrowing of $28.3b, funded through share issuance mainly held by rest of the world. Overall the Australian economy borrowed $12.7b during the quarter, driven by the borrowings of the private non-financial sector.






National investment increased $20.7b in June quarter 2018 to $120.2b. The increase takes national investment to its highest level, surpassing the previous peak of $118.8b in the December quarter 2017. Prior to December quarter 2017, national investment had peaked in the December quarter 2012 at $116.0b, before falling steadily due to a decline in mining investment. Growth in recent quarters has been driven by public infrastructure investment as well as improvements in business conditions and confidence for private sector corporations.

Private non-financial corporations investment was $45.7b in the June quarter 2018. Investment peaked for private non-financial corporations in the June quarter 2013, before falling to a low of $36.7b in March quarter 2017 with the decline in mining investment. Household investment was $43.2b in June quarter 2018 and has grown steadily since the $24.6b recorded in March quarter 2012, driven by dwellings.






During June quarter 2018, national net borrowing was $12.7b, driven by the issuance of shares and other equity by private non-financial sector.

Net borrowing of $28.4b by non-financial corporations was a result of disposing of $9.3b of financial assets and incurring $19.1b in liabilities. Non-financial corporations incurred liabilities through the issuance of shares and other equity.

Net borrowing of $10.6b by financial corporations was a result of acquiring $45.2b of financial assets and incurring $55.8b in liabilities. The acquisition of financial assets by financial corporations was driven by issuance of loans and acquisition of one name paper and bonds, which were partly offset by derivative settlements. Financial corporations' net incurrence of liabilities was driven by an increase in insurance technical reserves and issuance of one name paper and bonds. These were partly offset by settlement in derivative liabilities.

Net lending of $0.4b by general government was a result of acquiring $17.8b of financial assets and incurring $17.5b in liabilities mainly through bond issuance. The financial assets primarily acquired by general government were loans and placements, and one name paper holdings. These were partly offset by divestment in bonds.

Households were net lenders in June quarter 2018. Households acquired $37.4b in net equity in reserves with $4.2b of unfunded superannuation claims. Households acquired $4.0b in shares and other equity assets and incurred liabilities through $26.4b in loan borrowings.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)	Release Date
September 2018	13 December 2018
December 2018	28 March 2019
March 2019	27 June 2019
June 2019	26 September 2019

CHANGES TO THIS ISSUE

Following ongoing quality assurance work a number of data quality issues have been identified with Table 52. Nominal Value of Short Term Loans and Placements Market ($ million) and Table 53. Nominal Value of Long Term Loans and Placements Market ($ million). These tables will be unavailable until further notice. However, Table 45. The Short Term Loans and Placements Market ($ million) and Table 46. The Long Term Loans and Placements Market ($ million), which are on a market value basis, are available.


REVISIONS IN THIS ISSUE

There have been revisions to previously published aggregates due to:

• Quality assurance reviews affecting the published aggregates after September quarter 2014, in addition to amendments to data collected in the ABS Survey of Financial Information, ABS Survey of International Investment and to data derived from Australian Prudential Regulation Authority (APRA) administrative data sets.
• Revisions to the sectoral capital accounts are due to more up-to-date data being incorporated and concurrent seasonal adjustment.

CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or National accounts by email <national.accounts@abs.gov.au>.


PRIVACY POLICY

The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.