Sun 8th December , 2019

The Australian economy grew 0.4 per cent in September 2019 quarter


The 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).

 Chief 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.”

 Net exports contributed 0.2 percentage points to growth this quarter. Domestic final demand remained subdued contributing 0.2 percentage points.

 Government spending was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.

 The household sector remained relatively subdued, with dwelling investment recording its fourth consecutive decline with a fall of 1.7 per cent during the quarter.

 Household 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.

 The 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.