Australian National Accounts: National Income, Expenditure and Product

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Quarterly estimates of key economic flows in Australia, including gross domestic product (GDP), consumption, investment, income and saving

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Reference period
December 2022
Released
1/03/2023
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Key statistics

  • The Australian economy rose 0.5% in seasonally adjusted chain volume measures
  • In nominal terms, GDP rose 2.1%
  • The terms of trade rose 0.6%
  • Household saving ratio decreased to 4.5% from 7.1%

In this release

For a breakdown of key information from this and other recent economic releases, see 12 things that happened in the Australian economy during the last quarter.

This quarter's National Accounts includes the following articles:

For more information about the changes in this issue, please see Revisions and changes on this page.

Seasonal reanalysis of national accounts series

Annual seasonal reanalysis of national accounts series will be conducted over the March 2023 and June 2023 quarters. This process reviews the seasonal factors in more detail than is possible in the quarterly processing cycle, including assessing the appropriateness of any prior corrections. As part of the reanalysis process, the suspension of trend estimates and use of the forward factor method for series with significant and prolonged impacts from COVID-19 will be reviewed. Revisions to seasonally adjusted estimates will occur as part of these reviews.

Economic overview

Unless otherwise stated all figures are in seasonally adjusted, chain volume measures.

The reference year for chain volume measures is 2020-21.

December quarter key figures, percentage changes (a)
 Sep 21 to Dec 21Dec 21 to Mar 22Mar 22 to Jun 22Jun 22 to Sep 22Sep 22 to Dec 22Through the year, Dec 21 to Dec 22
Chain volume GDP and related measures (b)
 GDP3.70.60.90.70.52.7
 GDP per capita (c)3.40.20.40.1-0.8
 Gross value added market sector (d)3.60.71.21.10.23.2
 Real net national disposable income1.02.31.1-1.01.64.0
Productivity
 GDP per hour worked1.00.5-2.90.2-1.4-3.5
 Real unit labour costs-0.8-2.3-1.31.70.1-1.8
Prices
 GDP chain price index (original)-1.05.14.10.20.610.3
 Terms of trade-6.28.44.5-5.90.67.2
Current price measures
 GDP3.24.34.01.22.112.0
 Household saving ratio12.911.28.37.14.5na

na not available
a. Change on preceding quarter; last column shows the change between the current quarter and the corresponding quarter of the previous year.
b. Reference year for chain volume measures and real income measures is 2020-21.
c. Population estimates are as published in the National, state and territory population (cat. no. 3101.0) and ABS projections.
d. ANZSIC divisions A to N, R and S. See Glossary - Market sector.

Australian economy grew 0.5% in the December quarter 2022

Gross Domestic Product (GDP) rose 0.5% this quarter and 2.7% through the year. Although this is the fifth consecutive increase, growth slowed in each of the last two quarters. Net trade (increased exports and fall in imports) and consumption were the primary contributors to GDP growth in the December quarter.

Domestic price pressures continued

Nominal GDP rose 2.1%. The GDP implicit price deflator (IPD) increased 1.6% with higher domestic prices and a small rise in the terms of trade.

The domestic final demand IPD rose 1.4% over the quarter, and 6.6% through the year. This is the largest through the year increase since March quarter 1990. Though elevated, goods inflation began to moderate, particularly in pricing for construction materials as supply chains improve. Services inflation remained strong as skilled labour shortages and a tight labour market continued to add upward pressure to labour costs. 

The terms of trade rose 0.6% as growth in export prices (+1.8%) outpaced import prices (+1.3%). Mining commodities drove the rise in export prices, consistent with global demand for Australian metals. The depreciation of the Australian dollar contributed to the rise in import prices.

Net trade contributed to growth

Net trade contributed 1.1 percentage points to GDP, as exports increased 1.1% and imports fell 4.3%.

Domestic final demand was unchanged. Growth has moderated in each of the last four quarters, in line with the wind down of the pandemic recovery and growing cost-of-living pressures for households. Private demand detracted 0.1 percentage points from GDP growth, driven by decreased private investment (-1.7%), which was partly offset by a rise in household consumption (+0.3%). Public demand offset private, contributing 0.1 percentage points to GDP. The rise was driven by increased government expenditure (+0.6%), partly offset by a fall in public investment (-0.7%).  

Changes in inventories recorded a build-up of $1.1 billion in December quarter, down from $3.9 billion in the September quarter, which detracted 0.5 percentage points from GDP growth. Private non-farm inventories experienced a rundown with retail inventories declining, reflecting the fall in consumption good imports.

a. Contributions may not be additive due to rounding.

Exports increased for the third consecutive quarter

Exports of goods and services rose 1.1%, driven by services exports, while goods fell. Services exports rose 9.8%, reflecting the sustained recovery in education and personal travel as international students and tourists continued to return to Australia. 

Imports of goods and services fell 4.3%. Imports of goods (-3.8%) drove the fall and was broad-based across consumption, capital and intermediate goods, aligned with weaker domestic demand. Imports of services (-6.5%) also contributed to the fall as Australian travellers favoured cheaper, short-haul destinations. This follows recent strength since the reopening of international borders.

a. Contributions may not be additive due to rounding.

Household spending moderated

Household spending rose 0.3%, the weakest quarterly rise since the Delta-variant lockdowns in September 2021. Growth in discretionary spending (+0.4%) slowed to be more in line with essential spending (+0.3%). 

Discretionary spending was led by hotels, cafes and restaurants (+1.6%) and transport services (+5.7%), reflecting residual post-lockdown demand. Spending in these categories slowed following four consecutive quarters of strong demand. Other discretionary spending on recreation and culture (-1.4%), clothing and footwear (-2.7%), and furnishings and household equipment (-1.2%) fell as cost-of-living pressures began to weigh on household budgets.

Spending on food (+2.4%) rebounded following four consecutive falls, as pricing fell with increased availability of fruit and vegetables following supply issues earlier in the year. 

Private housing and business investment both declined

Private investment fell 1.7%. Business investment fell 1.4%, driven by non-dwelling construction with the completion of major projects.

Ownership transfer costs drove the fall in housing investment (-2.1%), reflecting lower levels of property market activity following recent interest rate rises. Despite falling for five consecutive quarters, ownership transfer costs remain above pre-pandemic levels. 

Dwelling investment also declined, as renovation activity supported by HomeBuilder reached completion. This was partly offset by new and used dwellings (+1.4%) as materials supply improved for the second consecutive quarter. 

a. Contributions may not be additive due to rounding.

Growth in COE continued in the tight labour market

Compensation of employees (COE) rose 2.1% as tight labour market conditions continued in the December quarter. Sustained wages and employment growth translated to a 10.4% through the year rise in COE, the largest since September 2007.

Skilled labour shortages continued to add pressure to wages, resulting in businesses paying more to attract and retain staff. The Fair Work Commission's 2021-22 decision to increase in the minimum wage also contributed to strength in COE as award wage rises came into effect for the aviation, tourism and hospitality industries this quarter. 

Operating surplus rose as mining profits recovered

Gross operating surplus rose 2.9%, driven by private non-financial corporations (+3.7%) as mining profits rebounded. Financial corporations operating surplus (+0.5%) slowed as loan and deposit balance growth softened and banks' margins fell with increased competition in the deposit market. Dwellings owned by persons operating surplus (+2.1%) grew at its highest rate since September quarter 2011, due to rising rental prices. 

Mining contributed 1.1 percentage points to total growth in gross operating surplus plus gross mixed income (GOSMI), in line with increased exports of iron ore and coal, combined with higher pricing for some mining commodities. Electricity, gas, water and waste services was the largest non-mining industry contributing to growth in GOSMI, driven by electricity companies which experienced lower input costs in power generation and higher revenue through new contract pricing.

a. Contributions may not be additive due to rounding.

Household saving ratio declined below pre-pandemic levels

The household saving ratio declined from 7.1% to 4.5%, the lowest level since September 2017. Saving fell following a rise in household consumption and a fall in gross disposable income.

Household gross income rose 1.6% driven by labour income (+2.1%). Non-labour income also grew as interest received on deposits rose 25.3%.

Household income payable rose 8.9%, the largest rise since June 2002. Income tax rose, aligned with continued growth in wages, employment and hours worked, plus higher returns on investment income. Interest payable on dwellings rose 23.0%, reflecting further interest rate rises over the quarter.
 

a. Contributions may not be additive due to rounding.

Total industry production softened

Gross value added (GVA) rose modestly by 0.3%, as results were mixed across industries. 

Mining drove the rise (+3.2%), particularly iron ore mining, as newer mines increased productive capacity. This was partly offset by coal mining as mines in New South Wales suffered from flooding.

Accommodation and food services (+1.4%) and Transport, postal and warehousing (+0.6%) rose aligned with continued household spending on hotels, cafes and restaurants, and domestic air services. Growth in both industries has moderated over the last two quarters as pent-up post-lockdown demand for these services subsided. 

Electricity, gas, water and waste services (-4.9%) experienced a large fall with reduced electricity consumption from a mild start to the summer on the east coast. 
 

Expenditure

Expenditure
 Sep 22 to Dec 22Dec 21 to Dec 22Sep 22 to Dec 22
 % change% change% points contribution to GDP growth
Final consumption expenditure
 General government0.62.40.1
 Households0.35.40.2
 Total final consumption expenditure0.44.50.3
Gross fixed capital formation
 Private   
  Dwellings-0.9-3.7-
  Ownership transfer costs-6.2-20.6-0.1
  Non-dwelling construction-2.72.7-0.1
  Machinery and equipment-1.24.6-
  Cultivated biological resources2.910.1-
  Intellectual property products1.00.6-
 Public-0.72.8-
 Total gross fixed capital formation-1.4-0.4-0.3
Changes in inventoriesnana-0.5
Gross national expenditure-0.53.2-0.5
Exports of goods and services1.17.70.2
Imports of goods and services-4.312.10.9
Statistical discrepancy (E)nana-0.1
Gross domestic product0.52.70.5

- nil or rounded to zero (including null cells)
na not available

Final consumption expenditure (FCE) 0.4%

Gross fixed capital formation (GFCF) -1.4%

Changes in inventories

Exports and imports of goods and services

Income

Income estimates are in seasonally adjusted current prices

Income
 Sep 22 to Dec 22Dec 21 to Dec 22Sep 22 to Dec 22
 % change% change% points contribution to GDP growth
Compensation of employees2.110.40.9
Gross operating surplus
 Private non-financial corporations3.721.10.9
 Other (a)1.77.70.1
Gross mixed income-1.5-0.5-0.1
Taxes less subsidies on production and imports2.017.60.2
Statistical discrepancy (I)nana-
Gross domestic product2.112.02.1

- nil or rounded to zero (including null cells)
na not available
a. Includes Public non-financial corporations, Financial corporations, General government and Dwellings owned by persons.

Compensation of employees (COE) 2.1%

Gross operating surplus (GOS) 2.9%

Taxes less subsidies on production and imports 2.0%

Production

Production
 Sep 22 to Dec 22Dec 21 to Dec 22Sep 22 to Dec 22
 % change% change% points contribution to GDP growth
Agriculture, Forestry and Fishing-2.6-9.1-0.1
Mining3.24.80.3
Manufacturing-1.8-2.9-0.1
Electricity, Gas, Water and Waste Services-4.90.2-0.1
Construction-0.31.8-
Wholesale Trade-0.71.9-
Retail Trade-0.40.9-
Accommodation and Food Services1.420.3-
Transport, Postal and Warehousing0.613.0-
Information Media and Telecommunications2.69.20.1
Financial and Insurance Services-0.20.6-
Rental, Hiring and Real Estate Services1.10.3-
Professional, Scientific and Technical Services-1.84.4-0.1
Administrative and Support Services2.46.60.1
Public Administration and Safety1.70.80.1
Education and Training0.41.4-
Health Care and Social Assistance-0.31.0-
Arts and Recreation Services2.410.1-
Other Services4.95.00.1
Ownership of dwellings0.51.9-
Taxes less subsidies on products1.53.20.1
Statistical discrepancy (P)nana0.1
Gross domestic product0.52.70.5

- nil or rounded to zero (including null cells)
na not available

Agriculture, Forestry and Fishing -2.6%

Mining 3.2%

Manufacturing -1.8%

Electricity, Gas, Water and Waste Services -4.9%

Construction -0.3%

Wholesale Trade -0.7%

Retail Trade -0.4%

Accommodation and Food Services 1.4%

Transport, Postal and Warehousing 0.6%

Information Media and Telecommunications 2.6%

Financial and Insurance Services -0.2%

Rental, Hiring and Real Estate Services 1.1%

Professional, Scientific and Technical Services -1.8%

Administrative and Support Services 2.4%

Health Care and Social Assistance -0.3%

Arts and Recreation Services 2.4%

Other Services 4.9%

State and territory final demand

State and territory final demand, percentage changes (a)
  Sep 22 to Dec 22
 NSWVic.QldSAWATas.NTACTAust.(b)
Final consumption expenditure
 General government0.51.51.21.6-2.81.0-0.91.60.6
 Households0.20.4-0.1-0.11.60.00.20.10.3
Gross fixed capital formation
 Private-1.8-1.0-3.4-2.2-0.6-2.30.0-3.4-1.7
 Public-0.1-3.11.6-3.32.00.3-4.6-2.6-0.7
State final demand-0.10.2-0.3-0.20.10.0-0.50.30.0

- nil or rounded to zero (including null cells)
a. Change on preceding quarter
b. Australia estimates relate to Domestic final demand.

Quarterly volume measures, seasonally adjusted

The map shows quarterly volume measures of state final demand by state/territory.
New South Wales' state final demand decreased 0.1% for the quarter.
Victoria's state final demand increased 0.2% for the quarter.
Queensland's state final demand decreased 0.3% for the quarter.
South Australia's state final demand decreased 0.2% for the quarter.
Western Australia's state final demand increased 0.1% for the quarter.
Tasmania's state final demand was unchanged for the quarter.
Northern Territory's state final demand decreased 0.5% for the quarter.
Australian Capital Territory's state final demand increased 0.3% for the quarter.

New South Wales -0.1%

Victoria 0.2%

Queensland -0.3%

South Australia -0.2%

Western Australia 0.1%

Tasmania 0.0%

Northern Territory -0.5%

Australian Capital Territory 0.3%

Key tables

Key national accounts aggregates

Analytical expenditure aggregates

Expenditure aggregates

Expenditure on GDP

Household final consumption expenditure

Industry gross value added

Income from GDP

State final demand

Revisions and changes

Revisions in this issue

There are revisions in this issue due to the incorporation of more up-to-date data and concurrent seasonal adjustment. 

Seasonally adjusted and trend estimates

In the March quarter 2020 issue of Australian National Accounts: National Income, Expenditure and Product, the ABS advised that the method used to produce seasonally adjusted estimates would be changed from the ‘concurrent’ method to the ‘forward factors’ method for series with significant and prolonged impacts from COVID-19. Trend estimates for all series were also suspended from June 2019 (inclusive).

Over the March 2023 and June 2023 quarters, annual seasonal reanalysis of national accounts series will be conducted. As part of this process, the suspension of trend estimates and use of the forward factor method for series with significant and prolonged impacts from COVID-19 will be reviewed. Revisions to seasonally adjusted estimates will occur as part of this process.

Data downloads

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Time series spreadsheets

Data files

Data cubes

HFCE Food Estimates, current price and volume, COICOP Group, SUPC and IOPC, Original

Data files
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Previous catalogue number

This release previously used catalogue number 5206.0.
 

Methodology

Australian National Accounts: National Income, Expenditure and Product methodology, December 2022

Articles

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