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 2023
Released
6/03/2024
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Key statistics

  • The Australian economy rose 0.2% in seasonally adjusted chain volume measures 
  • In nominal terms, GDP rose 1.4% 
  • The terms of trade rose 2.2%
  • Household saving to income ratio increased to 3.2% from 1.9% 

In this release

Economic overview

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

The reference year for chain volume measures is 2021-22.

December quarter key figures, percentage changes (a)
 Sep 22 to Dec 22Dec 22 to Mar 23Mar 23 to Jun 23Jun 23 to Sep 23Sep 23 to Dec 23Through the year, Dec 22 to Dec 23
Chain volume GDP and related measures (b)    
 GDP0.80.60.50.30.21.5
 GDP per capita (c)0.3--0.2-0.5-0.3-1.0
 Gross value added market sector (d)0.60.70.60.10.11.5
 Real net national disposable income0.61.6-0.9-0.51.41.6
Productivity      
 GDP per hour worked-1.2-0.3-1.71.00.5-0.4
 Real unit labour costs0.2-0.22.71.1-3.7
Prices       
 GDP chain price index (original)0.61.6-2.10.52.02.0
 Terms of trade-3.23.2-7.1-2.02.2-3.9
Current price measures      
 GDP1.52.3-0.71.41.44.4
 Household saving ratio3.83.53.01.93.2na

- nil or rounded to zero 
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 2021-22. 
c. Population estimates are as published in National, state and territory population and ABS projections. 
d. ANZSIC divisions A to N, R and S. See Glossary - Market sector. 
 

Australian economy grew 0.2% in the December quarter 2023

Gross domestic product (GDP) rose 0.2%, driven by government expenditure and private business investment. Domestic demand continued to slow in the December quarter as households cut back on discretionary spending while investment slowed following three quarters of growth. 

Export prices rise while domestic inflation eases

Nominal GDP rose 1.4%. The GDP implicit price deflator (IPD) increased 1.2%, driven by a rise in export prices as demand from export markets for iron ore and coal increased. Import prices rose 0.8% driven by a weaker Australian dollar.

The domestic final demand IPD (+1.0%) experienced its softest rise since December quarter 2021. Prices for household consumption increased 0.8%, driven by prices for services which grew by 1.3%. Prices for goods declined for the first quarter since the September quarter 2021 COVID lockdowns as supply chains improved. 

Government spending continues to grow

Domestic final demand contributed 0.1 percentage points to GDP growth, driven by consumption.

Consumption contributed 0.2 percentage points to growth. Government consumption rose 0.6% to be 2.7% higher through-the-year. Household expenditure (+0.1%) had a small rise.

Investment detracted 0.1 percentage points from GDP growth, with both private (-0.2%) and public investment (-0.2%) falling over the quarter.

Changes in inventories detracted 0.3 percentage points from growth, recording a $2.7 billion run down in the December quarter. Mining inventories declined as coal inventories were run down to meet rising international demand. Wholesale Trade inventories also experienced a run-down driven by weaker grain production. 

  1. Contributions may not be additive due to rounding.

Fall in imports drives net trade

Imports of goods and services fell 3.4%, driven by falls in imports of consumption and capital goods. Imports of consumption goods fell across the board, while imports of capital goods declined with falls in industrial equipment and imports of agricultural machinery in line with a smaller winter harvest. Imports of services declined as Australians spent less money overseas.

Exports of goods and services fell 0.3%, driven by exports of goods (-0.4%). Exports of non-monetary gold drove the falls following strength in the September quarter. Exports of rural goods also fell as global demand for Australian grain softened. Non-rural goods offset the falls with rising international demand for coal and mineral ores.

Exports of services rose 0.5% as numbers of incoming travelers and international students continued to grow.

  1. Contributions may not be additive due to rounding.

Government sector expenditure rises

Government expenditure (+0.6%) contributed 0.1 percentage points to GDP. National non-defence rose 2.0% with strength in social benefits to households and employee expenses. Social benefits experienced broad based strength driven by a rise in health programs through Medicare and Pharmaceutical Benefits Scheme. Employee expenses rose with some Commonwealth agencies increasing staffing levels, including staff for the Referendum on an Aboriginal and Torres Strait Islander Voice.  

Defence spending fell 3.5% in the quarter following strength in the September quarter driven by defence exercises.

  1. Contributions may not be additive due to rounding.

Households stay at home due to cost-of-living pressures

Household spending rose 0.1% in December quarter as a rise in spending on essentials (0.7%) was offset by a fall in discretionary spending (-0.9%).

The rise in essential spending was driven by spending on Food and on Electricity, gas and other fuels, with higher demand for cooling as a result of warmer than average weather for the December quarter. Spending in Food coincides with a fall of 2.8% in Hotels, cafes and restaurant spending, suggesting households substituted eating out for cooking at home. Purchase of vehicles declined 3.6% following high levels of growth in the September quarter, but remained elevated through-the-year at 13.8%. 

 

Public and private investment slows

Investment fell 0.2% in the December quarter, with falls recorded in both private and public investment.

Private investment (-0.2%) fell driven by a fall in dwellings as elevated interest rates led to weak approvals and new dwelling commencements. Renovation activity also decreased in the quarter following strength in the September quarter.

Machinery and equipment (-1.6%) fell driven by lower demand for agricultural equipment and transport equipment.

Non-dwelling construction (+2.7%) partly offset the falls with work on data centres and warehouses during the quarter. 

Ownership transfer costs (+3.5%) also increased with rises observed across most states as residential housing market activity continued to grow.

Public investment (-0.2%) had a small fall driven by a fall in general government offset by a rise in public corporations investment. Despite the fall in the current quarter, the series remains at elevated levels.

Mining leads industry rises

Gross value added (GVA) rose 0.2% this quarter, with 12 out of 19 industries rising.

Mining rose 1.0% as activity increased following maintenance activity in the September quarter. International demand for iron ore and coal exports was serviced by rising levels of production as well as a large drawdown in mining inventories.

Public administration and safety rose 1.0%, driven by work on the Referendum on an Aboriginal and Torres Strait Islander Voice in October. Agriculture, Forestry and Fishing fell 3.4%, as dry conditions affected yields of winter crops such as wheat.

Accommodation and Food Services fell 3.2% as hotels, cafes and restaurants experienced a downturn in consumer spend.
 

Mining GOS rises for the first time since June 2022

Gross operating surplus (GOS) rose by 2.6%. Strength was driven by private non-financial corporations (+2.9%) as mining profits rebounded after five quarters of declines. Demand for steelmaking inputs in China boosted commodity prices and exports of iron ore and metallurgical coal. Non-mining industries GOS offset the rises with decreases in profits driven by higher operating expenses and falling domestic demand.

Financial corporations GOS (+1.6%) rose for the eighth consecutive quarter as households continued to roll-off fixed rate mortgages onto higher variable rates. 

Dwelling GOS rose 2.8% and remained at elevated levels through-the-year supported by strong ongoing demand for housing.

Public non-financial corporations GOS (-1.1%) partly offset the rises with falls observed in water and electricity infrastructure projects in the quarter.

COE maintains elevated levels in the December quarter

Compensation of employees (COE) rose 1.4%. Private COE rose 0.9%, with rises occurring across 12 of 16 market sector industries. Growth has moderated following the strong rise in the September quarter but remained at elevated levels amid strong competition to attract and retain skilled workers in the tight labour market.

Public COE rose 3.3% in the December quarter. It rose 9.1% through-the-year, the strongest growth since March 2011. The quarterly rise was driven by industrial reforms and new enterprise bargaining agreements following the lifting of wage caps across a number of states and territories. Wages were also boosted by increased employment at some government agencies including the Australian Electoral Commission with the Referendum on an Aboriginal and Torres Strait Islander Voice taking place during the quarter. 
 

Household saving ratio rose

The household saving to income ratio increased from 1.9% to 3.2% and has returned to the 3.0% growth range seen since the December 2022 quarter. 

The decline in the September quarter was driven by a significant increase in income tax payable due to a change in timing of final tax return submissions compared to previous years. Saving rose in the December quarter due to a rise in gross disposable income and a fall in income payable. Compensation of employees (+1.4%), social assistance benefits (+5.9%), and interest received (+6.7%) drove growth in income receivable, while income payable declined through a fall in income tax paid by households (-3.3%). 

Nominal household final consumption expenditure (+0.9%) partly offset household saving as prices for essential goods and services continued to rise.

Expenditure

Expenditure
 Sep 23 to Dec 23Dec 22 to Dec 23Sep 23 to Dec 23
 % change% change% points contribution to GDP growth
Final consumption expenditure   
 General government0.62.70.1
 Households0.10.1-
 Total final consumption expenditure0.20.90.2
Gross fixed capital formation   
 Private   
  Dwellings-3.8-3.1-0.2
  Ownership transfer costs3.54.80.1
  Non-dwelling construction2.79.10.1
  Machinery and equipment-1.67.4-0.1
  Cultivated biological resources-2.7-3.7-
  Intellectual property products0.98.6-
 Public-0.213.6-
 Total gross fixed capital formation-0.26.7-0.1
Changes in inventoriesnana-0.3
Gross national expenditure-0.21.3-0.2
Exports of goods and services-0.34.2-0.1
Imports of goods and services-3.43.50.7
Statistical discrepancy (E)nana-0.2
Gross domestic product0.21.50.2

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

Final consumption expenditure (FCE) 0.2%

Gross fixed capital formation (GFCF) -0.2%

Changes in inventories

Exports and imports of goods and services

Income

Income estimates are in seasonally adjusted current prices

Income
 Sep 23 to Dec 23Dec 22 to Dec 23Sep 23 to Dec 23
 % change% change% points contribution to GDP growth
Compensation of employees1.48.40.7
Gross operating surplus  
 Private non-financial corporations2.9-3.90.6
 Other (a)2.210.10.4
Gross mixed income-4.1-8.6-0.3
Taxes less subsidies on production and imports-0.35.5-
Statistical discrepancy (I)nana0.1
Gross domestic product1.44.41.4

- 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) 1.4%

Gross operating surplus (GOS) 2.6%

Taxes less subsidies on production and imports -0.3%

Production

Production
 Sep 23 to Dec 23Dec 22 to Dec 23Sep 23 to Dec 23
 % change% change% points contribution to GDP growth
Agriculture, Forestry and Fishing-3.47.0-0.1
Mining1.0-0.30.1
Manufacturing-1.20.7-0.1
Electricity, Gas, Water and Waste Services0.92.6-
Construction0.63.6-
Wholesale Trade-0.6-1.4-
Retail Trade0.3-0.2-
Accommodation and Food Services-3.2-0.9-0.1
Transport, Postal and Warehousing-0.33.7-
Information Media and Telecommunications0.15.8-
Financial and Insurance Services0.41.2-
Rental, Hiring and Real Estate Services-0.72.5-
Professional, Scientific and Technical Services1.21.40.1
Administrative and Support Services0.70.2-
Public Administration and Safety1.03.30.1
Education and Training0.41.7-
Health Care and Social Assistance0.53.2-
Arts and Recreation Services-0.80.7-
Other Services1.45.6-
Ownership of dwellings0.41.6-
Taxes less subsidies on products-1.1-0.3-0.1
Statistical discrepancy (P)nana0.1
Gross domestic product0.21.50.2

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

Agriculture, Forestry and Fishing -3.4%

Mining 1.0%

Manufacturing -1.2%

Electricity, Gas, Water and Waste Services 0.9%

Construction 0.6%

Wholesale Trade -0.6%

Retail 0.3%

Accommodation and Food Services -3.2%

Transport, Postal and Warehousing -0.3%

Information Media and Telecommunications 0.1%

Financial and Insurance Services 0.4%

Rental, Hiring and Real Estate Services -0.7%

Professional, Scientific and Technical Services 1.2%

Administrative and Support Services 0.7%

Public Administration and Safety 1.0%

Health Care and Social Assistance 0.5%

Arts and Recreation Services -0.8%

Other Services 1.4%

State and territory final demand

State and territory final demand, percentage changes (a)
         Sep 23 to Dec 23
 NSWVic.QldSAWATas.NTACTAust.(b)
Final consumption expenditure        
 General government0.70.40.71.50.0-0.41.00.30.6
 Households-0.20.20.2-0.30.90.2-0.70.30.1
Gross fixed capital formation        
 Private-1.7-0.20.8-3.60.2-2.515.015.3-0.2
 Public-2.2-2.32.22.95.95.23.4-8.1-0.2
State final demand-0.40.00.6-0.40.80.03.01.10.1

- 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 -0.4% for the quarter.
Victoria's state final demand remained flat at 0.0% for the quarter.
Queensland's state final demand increased 0.6% for the quarter.
South Australia's state final demand decreased -0.4% for the quarter.
Western Australia's state final demand increased 0.8% for the quarter.
Tasmania's state final demand remained flat at 0.0% for the quarter.
Northern Territory's state final demand increased 3.0% for the quarter.
Australian Capital Territory's state final demand increased 1.1% for the quarter.

New South Wales -0.4%

Victoria 0.0%

Queensland 0.6%

South Australia -0.4%

Western Australia 0.8%

Tasmania 0.0%

Northern Territory 3.0%

Australian Capital Territory 1.1%

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

19/3/2024 - There was an error in the heading of the economic overview which reflected the September quarter instead of the December quarter 2023.

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

Interest receivable and payable in the Income Accounts

This issue includes revisions to interest receivable and interest payable in the Income Accounts, affecting the financial corporations, non-financial corporations and household sectors, between September quarter 2022 to September quarter 2023. Previous estimates were overstated for both interest series through this period. These revisions do not materially impact key aggregates in the National Accounts.

Upcoming changes to Agricultural estimates - Agriculture modernisation

The ABS is undergoing a process of modernising the collection of agriculture statistics, which is detailed in the information paper Modernising ABS agricultural statistics | Australian Bureau of Statistics. 

Changes in data availability and timing of ABS agricultural statistics requires re-engineering of compilation methods for Agricultural estimates in the National Accounts. As a result of this users should expect relatively small data revisions, commencing in the Australian National Accounts: National Income, Expenditure and Product, March quarter 2024. Levels and annual movements of Agricultural estimates have historically been updated for the March quarter release to incorporate detailed commodity data from the latest complete financial year using agricultural value estimates from the Agricultural Commodities Produced (VACP) collection. From the March quarter 2024 Supply Use estimates will be spliced forward using Agricultural commodity data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABAREs).

Data revisions will occur to the following estimates;

  • Agriculture Gross Value Added (GVA) (Table 6)
  • Forestry and fishing GVA (Table 6)
  • Agricultural income (Table 10)
  • Farm and Non-farm splits of GDP (Table 24)
  • Agriculture Gross operating surplus and gross mixed income (Table 45)

Revisions prior to the September quarter 2022 will be suppressed in line with National Accounts revision policy. Any revisions required prior to September quarter 2022 will be incorporated into the Annual National Accounts, released in October 2024.

More analysis on revisions to the data will be included as part the March quarter 2024 release. 

Suppression of data

The ABS has suppressed the release of some data in the December quarter release of Australian National Accounts: National Income and Product. Tables affected include Tables 26 and 33 State Final Demand, Detailed Components for New South Wales and Australian Capital Territory.
The data items affected include original and seasonal measures for current price and chain volume measures of:

  • Private ; Gross fixed capital formation - Non-dwelling construction - New building
  • Private ; Gross fixed capital formation - Non-dwelling construction - New engineering construction
  • Private ; Gross fixed capital formation - Non-dwelling construction - Net purchase of second hand assets
  • Private ; Gross fixed capital formation - Machinery and equipment - New
  • Private ; Gross fixed capital formation - Machinery and equipment - Net purchase of second hand assets

The reason for the data being suppressed is to confidentialise the transfer of a second hand asset from the private sector.

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 2024 and June 2024 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.

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Data cubes

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

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Published Releases

Previous catalogue number

This release previously used catalogue number 5206.0.

Methodology

Australian National Accounts: National Income, Expenditure and Product methodology, December 2023

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