The Australian economy grew 0.5 per cent in seasonally adjusted chain volume terms in the June quarter 2019 and 1.4 per cent through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.
Chief Economist for the ABS, Bruce Hockman, said: “The external sector drove GDP growth this quarter, while growth in the domestic economy remains steady”.
Net exports contributed 0.6 percentage points to growth this quarter, reflecting strong exports of mining commodities. “Strength in mining related activity was seen across a number of measures in the economy” Mr Hockman added.
Mining gross value added increased 3.4 per cent with strong production of coal and liquefied natural gas. Mining profits rose by 10.6 per cent driven by strong export growth and a continued rise in the terms of trade. Mining investment rose 2.4 per cent, with increases in investment in machinery and equipment.
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 a 0.4 per cent growth in household expenditure. While dwelling investment continued to decline, recording a fall of 4.4 per cent during the quarter.
Compensation of employees (COE) grew 1.3 per cent for the quarter, due to rises in the number of wage and salary earners and wage rate. COE growth was driven primarily by the Health Care and Social Assistance industry.
The household saving ratio was lower at 2.3.