5204.0 - Australian System of National Accounts, 2005-06

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 01/11/2006

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Overview In this Issue Key Aggregates Expenditure on GDP Industry Income from GDP Prices in the National Accounts Productivity Balance Sheets Investment at Current Prices International Trade Articles Understanding how to use National Accounts Frequently Asked Questions Learn about New and Upcoming Products About this Release Household Sector Balance Sheet - A National Accounts' Perspective (Feature Article) (Released 02/03/2007)	EXPENDITURE ON GDP Over the past five years there have been changes in the main drivers of growth in the expenditure measure of GDP. There has been a move away from strong contributions via Household final consumption expenditure and Dwelling investment towards Private business investment. Between 2001-02 and 2004-05 growth in HFCE ranged between 3.0% and 5.3% (contributing between 1.7 and 3.0 percentage points to GDP growth). 2005-06 saw 2.6% growth in HFCE (contributing 1.5 percentage points to GDP growth). The weakening in HFCE can be attributed to slowing growth in a number of different components, including Food, Transport, and Recreation and Culture. The percentage change in these components is shown below. See table 53 for more details. HFCE, Volume measures - Selected series View underlying data tables as an Lotus 123 File: 5204.0 Table 53. HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Chain volume measures ($m)(a), 23Kb (Help: Lotus 123) While the growth in HFCE has weakened over this period, Private business investment has increased by over 40% in the past three years, compared with almost 17% growth in the preceding three years. This strength has been associated with increased investment in New engineering construction (up over 50%) and Machinery and equipment. Investment related to Mining has been the primary source of this growth. See Investment at Current Prices for more detail. Growth in Private business investment has been offset by weakness in Dwelling investment. Dwelling investment fell by 4.1% in 2005-06. The fall in Dwelling investment at the national level was the result of weakness in New South Wales and Victoria. The fall in growth in 2005-06 reflects the cyclical nature of dwelling investment in Australia as shown in the figure below. Total dwelling investment, volume measures View underlying data tables as an Lotus 123 File: 5204.0 Table 3. EXPENDITURE ON GDP, Chain volume measures - Percentage changes(a), 29Kb (Help: Lotus 123) Public investment increased 23.8% over the past three years (compared to 12.4% in the preceding three years). Most of this investment has been undertaken by Public corporations. Despite a fall in the contributions to growth via Household final consumption expenditure and Dwelling investment, the strong increase in growth in Private business investment has caused growth in Gross National Expenditure (GNE)(footnote 1) to remain quite strong. Over the past five years GNE has been growing at a faster rate than GDP. This is due to Net exports (the difference between exports and imports of goods and services) detracting from growth in GDP. However, the gap between Imports and Exports has narrowed over the past three years. For more information on Net exports please refer to International Trade. View underlying data tables as an Lotus 123 File: 5204.0 Table 3. EXPENDITURE ON GDP, Chain volume measures - Percentage changes(a), 29Kb (Help: Lotus 123) Footnote: The total expenditure within a given period by Australian residents on final goods and services. Back Document Selection These documents will be presented in a new window.