Australian economy grew 0.4 per cent in seasonally adjusted chain volume terms
in the September quarter 2019 and 1.7 per cent through the year, according to
figures released by the Australian Bureau of Statistics (ABS).
Economist for the ABS, Bruce Hockman, said: “The economy has continued to grow,
however the rate of growth remains well below the long run average.”
exports contributed 0.2 percentage points to growth this quarter. Domestic final
demand remained subdued contributing 0.2 percentage points.
spending was the main contributor to growth in domestic final demand,
reflecting ongoing delivery of services in disability, health and aged care.
household sector remained relatively subdued, with dwelling investment
recording its fourth consecutive decline with a fall of 1.7 per cent during the
expenditure increased 0.1 per cent, with weakness in spending on discretionary
goods and services. The household saving ratio rose to 4.8. "The reduction
to tax payable did not translate to a rise in discretionary spending, which led
to a visible impact to household saving," said Mr Hockman.
RBA has decided to keep interest rate at 0.75% in the December, 2019 meeting in
the context of surge in housing prices, when it is worried that a further cut
may trigger an uncontrollable housing market.