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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

Reference period
June 2019
Released
4/09/2019

Key statistics

  • The Australian economy grew by 0.5% in seasonally adjusted chain volume terms.
  • Net exports contributed 0.6 percentage points to GDP growth.
  • Domestic final demand contributed 0.3 percentage points to GDP growth.
  • The terms of trade rose 1.4%.

Main features

June key figures

  Seasonally adjusted, percentage change (a)
Mar 18
to
Jun 18
Jun 18
to
Sep 18
Sep 18
to
Dec 18
Dec 18
to
Mar 19
Mar 19
to
Jun 19
Jun 18
to
Jun 19
Chain volume GDP and related measures (b)
 GDP0.70.30.10.50.51.4
 GDP per capita (c)0.3-0.1-0.20.1--0.2
 Gross value added market sector (d)0.9-0.2-0.20.70.30.6
 Real net national disposable income0.10.31.21.31.44.4
Productivity
 GDP per hour worked-0.5--0.3-0.30.4-0.2
 Real unit labour costs-0.40.10.1-0.80.3-0.4
Prices
 Terms of trade-1.31.13.03.11.48.9
Current price measures
 GDP1.01.21.21.61.25.4
 Household saving ratio3.22.52.73.02.3na

na not available
a. Change on preceding quarter, except for the last column which shows the change between the current quarter and the corresponding quarter of the previous year. Excludes Household saving ratio.
b. Reference year for chain volume measures and real income measures is 2016-17.
c. Population estimates are as published in the Australian Demographic Statistics (cat. no. 3101.0) and ABS projections.
d. ANZSIC divisions A to N, R and S. See Glossary - Market sector.
 

Revisions in this issue

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

Analysis

Australian economy grew by 0.5%

Australia's gross domestic product (GDP) grew by 0.5% in the June quarter 2019, following a 0.5% rise in the March quarter. The Australian economy grew 1.4% through the year.

Government expenditure grows strongly

Government final consumption expenditure rose 2.7% in the quarter and remains strong through the year at 6.2%. State and local government consumption expenditure was the main contributor to growth with increases in both employee expenses and non-employee expenses. National non-defence consumption expenditure also contributed to growth with continued spending on disability and aged care services.

Dwelling investment continues to decline

Investment in new and used dwellings fell by 6.0% in the quarter. Through the year growth is down 10.9%. There was broad-based weakness this quarter with houses (-6.1%) and other residential dwellings (-5.6%) both declining. These falls are consistent with the weakness in dwelling approvals. All states and territories recorded falls in dwelling investment with the exception of Tasmania.

Machinery and equipment drives investment

Mining investment rose 2.4% in the quarter, the first increase since June 2018. Mining related machinery and equipment drove the growth. Non-mining investment fell 1.8% driven by non-dwelling construction. Investment in non-residential buildings declined after strength in the March quarter. Weakness in engineering construction was driven by falls in infrastructure and renewables projects. Machinery and equipment partly offset the decline.

Net exports contributes 0.6 percentage points to GDP growth

Exports contributed 0.3 percentage points to GDP growth driven by non-rural goods with continued external demand for mining commodities. Imports also contributed 0.3 percentage points to GDP growth. The fall in imports was across the board with declines in all major categories. Consumption goods (-2.9%) had the largest decline in imports.

Mining picked up to meet external demand

Mining GVA rose 3.4% after adverse weather impacts in the previous quarter. Coal and Iron Ore production returned to expected levels. Oil and Gas Extraction drove the growth with increased production from new LNG facilities. The strength in mining production is reflected in increased exports.

Household consumption remains subdued

Household final consumption expenditure increased 0.4% in the quarter, with through the year growth moderating to 1.4%. The growth in household consumption was modest across most categories. However, there were falls in household spending on purchase of vehicles and electricity, gas and other fuel.

Household saving ratio lowers

The household saving ratio fell to 2.3 with growth in household final consumption expenditure outpacing household disposable income. The growth in disposable income was partly driven by growth in compensation of employees, which was offset by a fall in non-life insurance claims. The decline in income received for non-life insurance claims in the June quarter follows two positive quarters as a result of the NSW hailstorms and QLD floods.

Expenditure chain volume measures

 TrendSeasonally adjusted
% Change% Change% points
contribution
to growth
in GDP
% Change% Change% points
contribution
to growth
in GDP
Mar 19
to
Jun 19
Jun 18
to
Jun 19
Mar 19
to
Jun 19
Mar 19
to
Jun 19
Jun 18
to
Jun 19
Mar 19
to
Jun 19
Final consumption expenditure
 General government1.55.20.32.76.20.5
 Households0.31.50.20.41.40.2
 Total final consumption expenditure0.72.40.51.02.60.7
Gross fixed capital formation
 Private
  Dwellings-3.2-7.9-0.2-4.4-9.1-0.2
  Ownership transfer costs-5.6-22.7-0.14.3-19.60.1
  Non-dwelling construction-1.7-6.3-0.1-5.9-9.3-0.3
  Machinery and equipment1.13.0-3.45.90.1
  Cultivated biological resources0.4-9.8-4.1-9.0-
  Intellectual property products1.87.2-2.97.30.1
 Public-0.81.1--2.30.7-0.1
 Total gross fixed capital formation-1.3-3.7-0.3-1.7-4.0-0.4
Changes in inventoriesnanananana-0.5
Gross national expenditure-0.5--0.20.2-0.2
Exports of goods and services1.12.80.21.42.90.3
Imports of goods and services-0.5-1.80.1-1.3-2.80.3
Statistical discrepancy (E)nana0.1nana0.1
Gross domestic product0.41.50.40.51.40.5

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

June quarter

Summary comments

Final consumption expenditure

  • Household final consumption expenditure increased 0.4% in seasonally adjusted terms. This was driven by rises in hotels, cafes and restaurants (0.9%), recreation and culture (0.5%), and insurance and other financial services (0.4%). There were falls in purchase of vehicles (-3.0%) and electricity, gas and other fuel (-0.7%).
  • Government final consumption expenditure increased 2.7% in seasonally adjusted terms. State and local general government consumption increased 2.5%, while national general government consumption rose 2.8%.
     

Gross fixed capital formation

  • Gross fixed capital formation decreased 1.7% in seasonally adjusted terms, with both private and public sector investment detracting from growth. Private investment declined 1.6%, driven by falls in non-dwelling construction (-5.9%) and dwellings (-4.4%). This was partly offset by a rise in machinery and equipment (3.4%) investment. Public investment decreased 2.3%, driven by state and local general government (-4.1%). The decrease was partly offset by strength in national defence (7.1%).
     

Changes in inventories

  • Total inventories decreased $1,982m in seasonally adjusted terms following an increase of $559m last quarter. The decrease was driven by a run down in Public authorities, Wholesale trade and Retail trade inventories. Farm inventories rose this quarter, following a fall in the March quarter.
     

Exports and imports of goods and services

  • Exports of goods and services rose 1.4% in seasonally adjusted terms. Exports of goods increased 1.7% driven by non-rural goods (4.0%), particularly other mineral fuels (10.9%), partly offset by a fall in rural goods (-4.3%). Exports of services rose 0.4% driven by travel services (1.7%).
  • Imports of goods and services fell 1.3% in seasonally adjusted terms. Imports of goods fell 1.5% driven by consumption goods (-2.9%), intermediate goods (-1.4%) and capital goods (-0.5%). Imports of services declined 0.9% driven by travel services (-1.0%).

Income at current prices

 TrendSeasonally adjusted
% Change% Change% points
contribution
to growth
in GDP
% Change% Change% points
contribution
to growth
in GDP
Mar 19
to
Jun 19
Jun 18
to
Jun 19
Mar 19
to
Jun 19
Mar 19
to
Jun 19
Jun 18
to
Jun 19
Mar 19
to
Jun 19
Compensation of employees1.24.70.61.35.00.6
Gross operating surplus
 Private non-financial corporations3.214.30.62.914.90.6
 Other(a)0.73.30.10.63.30.1
Gross mixed income-0.3-2.6--0.2-3.8-
Taxes less subsidies on production and imports0.30.3-0.50.40.1
Statistical discrepancy (I)nana-nana-0.1
Gross domestic product1.45.41.41.25.41.2

- 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.
 

June quarter

Summary comments

Gross operating surplus (GOS)

  • Total GOS grew 1.9% increasing for all sectors except public non-financial corporations. Private non-financial corporations were the main contributor to growth, increasing 2.9%, which is consistent with the rise in the terms of trade (1.4%).
  • Through the year GOS increased 9.4%. Mining was the main contributor to this growth, driven by higher commodity prices and increased production volumes.
     

Compensation of employees (COE)

  • COE increased 1.3% and average compensation per employee rose 0.9%.
  • Private COE grew 1.1%, while public COE increased 2.0%.
  • All states and territories with the exception of the Northern Territory recorded growth in COE this quarter. The strongest growth came from Tasmania (3.6%) followed by Victoria (1.8%). All states recorded growth in COE through the year with the exception of Northern Territory.
     

Production chain volume measures

 TrendSeasonally adjusted
% Change% Change% points
contribution
to growth
in GDP
% Change% Change% points
contribution
to growth
in GDP
Mar 19
to
 Jun 19
Jun 18
to
 Jun 19
Mar 19
to
Jun 19
Mar 19
to
 Jun 19
Jun 18
to
 Jun 19
Mar 19
to
Jun 19
Agriculture forestry and fishing-1.5-7.2--2.1-8.1-
Mining1.95.60.23.46.20.3
Manufacturing-0.5-2.4--1.4-3.0-0.1
Electricity gas water and waste services-0.1-0.5--0.3-0.9-
Construction-1.1-5.9-0.1-1.4-6.9-0.1
Wholesale trade-1.2--1.40.3-0.1
Retail trade-0.3--0.2-
Accommodation and food services0.40.6-1.51.0-
Transport postal and warehousing0.20.7--0.3-0.2-
Information media and telecommunications1.44.5-1.23.6-
Financial and insurance services0.52.2-0.22.2-
Rental hiring and real estate services-0.30.4-0.10.7-
Professional scientific and technical services1.23.30.11.53.60.1
Administrative and support services1.25.3-0.85.6-
Public administration and safety1.04.40.11.85.00.1
Education and training0.52.0-0.52.1-
Health care and social assistance1.47.20.11.57.90.1
Arts and recreation services1.25.5--0.14.8-
Other services1.34.3-1.74.2-
Ownership of dwellings0.62.4-0.62.40.1
Taxes less subsidies on products-0.4-0.9-0.2-0.7-
Statistical discrepancy (P)nana-0.1nana-
Gross domestic product0.41.50.40.51.40.5

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

June quarter

Summary comments

Agriculture, Forestry and Fishing

  • Agriculture, Forestry and Fishing fell 2.1%, driven by falls in output of livestock and grains. Slaughter rates of cattle and calves decreased during the quarter, while the winter crops continued to be impacted by the ongoing drought conditions in the eastern states. The industry declined 8.1% through the year.
     

Mining

  • Mining rose 3.4%, driven by Oil and Gas Extraction (7.2%) and Coal Mining (3.9%). New and existing facilities drove the growth in oil and gas output, while a strength in global demand contributed to the increase in coal production. Iron Ore Mining rose 1.2%, as production volumes returned to normal levels following adverse weather conditions last quarter. The industry grew 6.2% through the year.
     

Manufacturing

  • Manufacturing fell 1.4%, driven by falls in Other Manufacturing (-6.4%) and Metal Product Manufacturing (-2.3%). This reflects general weakness in the Construction industry. Partly offsetting the fall were Food, Beverage and Tobacco Product Manufacturing (0.7%) and Petroleum, Coal, Chemical and Rubber Product Manufacturing (0.3%).
     

Electricity, Gas, Water and Waste Services

  • Electricity, Gas, Water and Waste Services fell 0.3%, driven by Electricity Supply (-1.8%). Partly offsetting the fall were Water and Waste Services (1.5%) and Gas Supply (3.1%).
     

Construction

  • Construction fell 1.4%, driven by Building Construction (-5.4%) with reduced activity in both residential and non-residential building construction. Heavy and Civil Engineering Construction (-1.0%) also contributed to the fall. The industry declined 6.9% through the year.
     

Wholesale Trade

  • Wholesale Trade fell 1.4%, recording the weakest result since September quarter, 2013. The result was driven by Machinery & Equipment and Motor Vehicle & Motor Vehicle Parts Wholesaling, reflecting ongoing weak domestic demand.
     

Transport, Postal and Warehousing

  • Transport, Postal and Warehousing fell 0.3% driven by reduced workloads for courier and delivery services. The fall was partly offset by a rise in Air and Space Transport (2.6%), driven by increases in domestic travel.
     

Information Media and Telecommunications

  • Information Media and Telecommunications rose 1.2%, driven by Other Information and Media (3.7%) due to a greater uptake of cloud services. The fall in Telecommunications Services (-0.9%) partly offset the rise.
     

Financial and Insurance Services

  • Financial and Insurance Services rose 0.2%, driven by Other Financial and Insurance Services (0.6%) due to a rise in superannuation services related to employment growth. Finance rose 0.1% driven by modest growth in loan and deposit balances.
     

Professional, Scientific and Technical Services

  • Professional, Scientific and Technical Services rose 1.5%, driven by continued demand for consultancy services, as well as an increase in technical and engineering services.
     

Administrative and Support Services

  • Administrative and Support Services rose 0.8%, reflecting continued demand for employment services. The industry grew 5.6% through the year.
     

Health Care and Social Assistance

  • Health Care and Social Assistance rose 1.5% driven by continued strength in both public and private health. The industry grew 7.9% through the year.

State final demand chain volume measures

  Seasonally adjusted, % change from Mar 19 to Jun 19
NSWVic.QldSAWATas.NTACTAust.(a)
Final consumption expenditure
 General government2.04.24.10.7-0.93.31.93.62.7
 Households0.20.40.70.30.30.20.20.50.4
Gross fixed capital formation
 Private-0.7-3.2-5.5-2.13.3-0.3-2.4-5.5-1.6
 Public-5.23.9-4.1-4.13.1-8.4-14.9-4.8-2.3
State final demand-0.5--0.20.80.3-0.60.80.3

- nil or rounded to zero (including null cells)
a. Australia estimates relate to Domestic final demand.
 

June quarter

Summary comments

Australia

  • Australia's domestic final demand increased 0.3%. Government final consumption expenditure (2.7%) was the largest contributor to growth. Household final consumption expenditure rose 0.4%. Private gross fixed capital formation detracted from growth, with falls in dwelling investment (-4.4%) and non-dwelling construction (-5.9%).
     

State final demand, quarterly volume measures: seasonally adjusted

State final demand, quarterly volume measures: seasonally adjusted
The image is a map of Australia by state/territory showing quarterly volume measures; New South Wales' state final demand was flat in the June quarter at 0%. Victoria's state final demand increased 0.5% for the quarter. Queensland's state final demand was flat in the June quarter at 0%. South Australia's state final demand decreased 0.2% for the quarter. Western Australia's state final demand increased 0.8% for the quarter. Tasmania's state final demand increased 0.3% for the quarter. Northern Territory's state final demand decreased 0.6% for the quarter. Australian Capital Territory's state final demand increased 0.8% for the quarter.

New South Wales

  • New South Wales' state final demand was flat in the June quarter. Final consumption expenditure contributed to growth with rises in household and government consumption expenditure. These rises were offset by a decline in state and local investment, which fell 8.6% during the quarter but remains at elevated levels. Dwelling investment decreased for the fourth consecutive quarter and is down 4.2% in 2018-19.
     

Victoria

  • Victoria's state final demand increased 0.5% for the quarter. This result was driven by public final demand with rises in both government consumption expenditure (4.2%) and investment (3.9%). The rise in government consumption expenditure was driven by ongoing spending on health services. Investment was driven by state and local general government with continued investment in infrastructure. Private investment declined 3.2%, driven by non-dwelling construction with falls in new building and new engineering construction. The decline in new building follows two consecutive rises and remains at elevated levels. The fall in new engineering construction reflects declines in energy related projects.
     

Queensland

  • Queensland's state final demand was flat in the June quarter. Consumption expenditure contributed to growth with strength in both government (4.1%) and household (0.7%) consumption expenditure. State and local consumption expenditure drove growth with spending related to flood remediation work. Household consumption expenditure was driven by both essential and discretionary spending. Private investment detracted from growth, driven by falls in dwelling investment.
     

South Australia

  • South Australia's state final demand decreased 0.2% for the quarter. Weakness in non-dwelling construction (-6.6%) was driven by falls in energy related projects. Household consumption expenditure partly offset this fall, driven by increased spending on discretionary items.
     

Western Australia

  • Western Australia's state final demand increased 0.8% for the quarter. Investment in machinery and equipment (19.8%) drove growth with continued investment in automation by mining. The main detractors from growth were private non-dwelling construction (-5.3%) and state and local consumption expenditure (-2.9%).
     

Tasmania

  • Tasmania's state final demand increased 0.3% for the quarter. This result was driven by government consumption expenditure, particularly national non-defence spending. Dwelling investment increased (10.1%), the strongest rise across all states and territories. Public investment declined for the quarter (-8.4%) but remains at elevated levels with strong growth through the year (7.2%).
     

Northern Territory

  • Northern Territory's state final demand decreased 0.6% for the quarter. State and local general government investment fell 34.2% due to decreased investment in new assets and net sales of second-hand assets. Private dwelling investment continued to decline, falling 24.8%. Government (1.9%) and household (0.2%) consumption expenditure partly offset these declines.
     

Australian Capital Territory

  • Australian Capital Territory's state final demand increased 0.8% for the quarter. National non-defence government consumption expenditure was the largest contributor to growth. Private investment detracted from growth with falls in dwelling investment (-8.8%) and machinery and equipment (-19.0%). The general government investment declined 5.0%.

Recent and upcoming releases

Australian National Accounts: Input-Output Tables (cat. no. 5209.0.55.001)

The 2016-17 issue of Australian National Accounts: Input-Output Tables was released on 27 June 2019. This product provides detailed information about the supply and use of products in the Australian economy and the structure of, and inter-relationships between, Australian industries. It presents information on input by industry and output by product group, use of domestic production, imports by industry and final demand categories, taxes and margins on supply by product, and industry and product concordances.

Read more

Data downloads

Table 1. Key national accounts aggregates

Table 2. Expenditure on Gross Domestic Product (GDP), chain volume measures

Table 3. Expenditure on Gross Domestic Product (GDP), current prices

Table 4. Expenditure on Gross Domestic Product (GDP), chain price indexes

Table 5. Expenditure on Gross Domestic Product (GDP), implicit price deflators

Table 6. Gross value added by industry, chain volume measures

Table 7. Income from Gross Domestic Product (GDP), current prices

Table 8. Household Final Consumption Expenditure (HFCE)

Table 9. Changes in inventories

Table 10. Agricultural income, current prices

Table 11. National income account, current prices

Table 12. National capital account, current prices

Table 13. Non-financial corporations income account, current prices

Table 14. Private non-financial corporations income account, current prices

Table 15. Public non-financial corporations income account, current prices

Table 16. Financial corporations income account, current prices

Table 17. General government income account, current prices

Table 18. National general government income account, current prices

Table 19. State and local general government income account, current prices

Table 20. Household income account, current prices

Table 21. External account, current prices

Table 22. Taxes, current prices

Table 23. Social assistance benefits payments, current prices

Table 24. Selected analytical series

Table 25. State final demand, summary components by state: chain volume measures

Table 26. State final demand, detailed components: New South Wales

Table 27. State final demand, detailed components: Victoria

Table 28. State final demand, detailed components: Queensland

Table 29. State final demand, detailed components: South Australia

Table 30. State final demand, detailed components: Western Australia

Table 31. State final demand, detailed components: Tasmania

Table 32. State final demand, detailed components: Northern Territory

Table 33. State final demand, detailed components: Australian Capital Territory

Table 34. Key aggregates and analytical series, annual

Table 35. Income from GDP and changes in inventories, annual

Table 36. Expenditure on Gross Domestic Product (GDP), chain volume measures and current prices, annual

Table 37. Industry gross value added, chain volume measures, annual

Table 38. National income account, current prices, annual

Table 39. National capital account, current prices, annual

Table 40. External account, current prices, annual

Table 41. Indexes of industrial production

Table 42. Unit labour costs

Table 43. Indexes of industrial production, annual

Table 44. Compensation of employees, state by sector: current prices

Table 45. Gross value added by industry, current prices

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