Q3 2019 GDP Results
GDP numbers out on Wednesday showed an economy growing at 1.7 per cent, up from 1.4 per cent last quarter.
Across the country, the figures show that household consumption growth slowed in the quarter to 0.1 per cent, taking the annual rate lower to 1.2 per cent.
A breakdown of the expenditure measures of GDP shows government consumption expenditure rose 0.9% in the quarter and remains strong through the year at 6.0%. Domestic final demand contributed 0.2 percentage points to GDP growth. Net exports contributed 0.2 percentage points to GDP growth.
A component of GDP is the state based consumption figures and is measured by State Final Demand.
The charts show the State Final Demand (Seasonally Adjusted) for All states with the annual figure on the left and the quarterly change on the right.
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%).
New South Wales
New South Wales' state final demand increased 0.3% in the September quarter. Final consumption expenditure contributed to growth with increases in both the household (0.2%) and government (2.4%) sectors. Growth in household consumption was subdued, with growth in essential consumption partly offset by falls in discretionary spending. The rise in government consumption reflects continued spending on social benefits to households and employee expenses. Public investment rose 6.6%, driven by the general government sector with growth across both national and state and local governments. Private capital investment partly offset the increases, driven by falls in both machinery and equipment and dwelling investment. Private investment has declined for four consecutive quarters, driven by ongoing falls in dwelling investment.
Victoria’s state final demand increased 0.4%. Private final demand rose 1.1%, driven by increased private investment with growth in ownership transfer costs and new building. Household consumption expenditure was subdued (0.1%), the softest growth since December 2012. Public gross fixed capital formation declined 8.9%, driven by state and local general government investment (-13.8%).
Queensland's state final demand increased 0.1%, driven by public investment (4.2%), with growth spread across general government and public non-financial corporations. Government consumption expenditure (-0.3%) partly offset the rise following strong expenditure related to flood remediation in the previous quarter. Private investment detracted from growth reflecting continued weakness in dwelling investment and new engineering construction. Growth in household consumption expenditure was flat for the quarter.
Western Australia's state final demand decreased 0.2% for the quarter. Investment in non-dwelling construction (-8.9%) drove the fall, due to the slowdown in mining related projects. Government final consumption expenditure (1.6%) contributed to growth, with strength from both the national and state and local governments. Household consumption expenditure was subdued with growth in essential spending partly offset by weakness in discretionary spending.
South Australia's state final demand decreased 0.3% for the quarter. Weakness in non-dwelling construction (-12.1%) was driven by falls in energy and mining related investment. Final consumption expenditure detracted from growth with falls from both the household (-0.1%) and government (-0.2%) sectors. Public investment partly offset the falls, with rises across public non-financial corporations and state and local general government.
Tasmania’s state final demand increased 0.8%, driven by household (0.5%) and government consumption expenditure (1.1%). Public investment rose 5.3% while private investment detracted from growth. The fall in private investment was driven by a decline in machinery and equipment (-17.6%). This fall was partly offset by an increase in non-dwelling construction (29.9%), driven by renewable energy projects.
Northern Territory's growth in state final demand was flat with growth in public final demand (2.6%) offset by a fall in private final demand (-1.8%). Public final demand was driven by government consumption expenditure (2.5%) with rises across both national and state and local general government. State and local general government investment contributed to growth following an asset sale in the previous quarter. The fall in private final demand was due to the decline in private investment, driven by non-dwelling construction. Household consumption was flat in the quarter and fell 1.3% through the year.
Australian Capital Territory
Australian Capital Territory’s state final demand increased 1.1% for the quarter. The largest contributor to growth was government consumption expenditure (1.0%). Private investment increased 3.1%, driven by new building construction. Public investment rose 3.4% with increased spending by both national general government and public corporations. The increased investment by public corporations was driven by the utilities industry. Household consumption increased 0.4%, above the national growth of 0.1%.