Today's National Accounts show an uptick in annual economic growth and a stronger and broader private sector recovery.
Growth in the private sector is picking up pace, powered by the strongest growth in private investment in almost five years.
The biggest story in the National Accounts is the very strong growth in business investment and investment in homes.
This is a positive and promising result and shows we've made a lot of progress together in our economy.
Australia's economy grew 0.4 per cent in the September quarter, to be 2.1 per cent higher through the year.
In annual terms, this was the fastest growth in two years.
Growth and private sector activity are picking up, unemployment is low, participation is high, more people are in jobs and real wages are growing.
This is the only quarter on record where the economy has had annual growth above two per cent, the unemployment rate had a four in front of it and participation was more than two thirds of the working age population.
While Australia is not immune to heightened global uncertainty and people are still under the pump, we're well placed to manage the challenges coming at us from around the world.
Since we were elected, employment growth has been much stronger than any major advanced economy.
Our annual growth was among the fastest of any major advanced economy.
And the OECD outlook report released overnight forecasts the Australian economy to grow faster than any major advanced economy for the next two years.
New private final demand grew 1.2 per cent in the quarter to be 3.1 per cent higher through the year.
Private demand has now contributed more to growth than public demand for four consecutive quarters.
In just a year, annual private demand growth has lifted more than five‑fold and it has contributed to all the economic growth over the past year.
At the same time, annual public demand growth is less than a third of what it was a year ago.
New public final demand grew 1.1 per cent in the quarter and 1.5 per cent over the year.
The most encouraging aspect of today's data is that private sector growth was powered by strong growth in investment.
Private investment recorded the fastest quarterly growth in almost half a decade, contributing 0.5 of a percentage point to growth in the quarter.
From data centres to renewable energy, machinery and new technology, businesses are investing, that's driving the private sector recovery and underpinning encouraging growth in Australia's economy.
New business investment grew 3.4 per cent in the quarter, to be 3.8 per cent higher through the year.
While there can be lumpiness quarter to quarter, the quarterly pick up in business investment was driven by machinery and equipment investment, including data centres, which was up 7.5 per cent in the quarter.
Since we came to office, new business investment has grown by an annualised average of 3.9 per cent, compared to negative 1.3 per cent growth under our predecessors.
Investment in new housing supply is another really positive part of the story in this National Accounts.
We're incentivising investment in housing and fast‑tracking approvals for new projects, our efforts are making a meaningful difference, and we see that in today's figures.
We have now seen dwelling investment grow for seven consecutive quarters, the longest consecutive period in a decade.
Dwelling investment grew 1.8 per cent in the quarter to be 6.5 per cent higher through the year.
When we came to office, dwelling investment was going backwards by 3.6 per cent in annual terms, but this data shows that housing investment is turning around under Labor.
Unlocking more investment in housing is one of our highest priorities and the National Accounts show the progress we're making together.
While we know quarterly movements can be volatile and the job is far from over, productivity has continued to grow.
Productivity lifted for the fourth consecutive quarter, up 0.2 per cent in the three months to September and in annual terms is growing at 0.8 per cent, consistent with the 20‑year average.
Market sector productivity was up 1.1 per cent through the year.
We've already delivered important reforms to make our economy more productive and we're maintaining momentum, with a sustained effort across government.
Consumption grew 0.5 per cent in the quarter and was up 2.5 per cent through the year. However, the quarterly number was around half the 0.9 per cent recorded in the previous quarter.
Consumption was driven by essential spending, which grew 1.0 per cent while discretionary spending fell 0.2 per cent.
The saving ratio lifted to 6.4 per cent, up from 6.0 per cent in the previous quarter.
Boosting wages and living standards is central to our economic plan and today's figures to show people are earning more under Labor.
When we came to office, real per capita incomes were going badly backwards, falling 1.5 per cent.
Real household gross disposable income per capita grew 0.5 per cent in the quarter, to be 2.1 per cent higher through the year.
The latest OECD data shows that real per capita incomes in Australia grew faster than any major advanced economy over the past year.
The progress we've made in real incomes reflects a combination of lower inflation, solid wage and income growth, Labor's tax cuts for every taxpayer and three interest rate cuts this year.
Compensation of employees grew by 1.7 per cent in the quarter, to be 7.1 per cent higher through the year. This has seen the wage share of income rise to 54.2 per cent from below 50 per cent before we came to office.
As the three rate cuts this year continue to flow through household budgets, mortgage interest costs are falling. Mortgage interest costs have fallen by around $2.1 billion since the end of last year.
Net exports detracted 0.1 of a percentage point from growth in the quarter, partly reflecting that much of the data centre and technology investment is imported.
Inventories detracted 0.5 of a percentage point from growth in the quarter, as they were drawn down to meet export demand for coal.
Today's data shows that when it comes to growing our economy, building more homes, incentivising investment and boosting wages and incomes, we are making a lot of progress together.
We know there's more work to do and people are still under pressure, which is why we're rolling out cost‑of‑living relief and getting on with our ambitious economic reform agenda.
The best way to improve living standards and continue to get more growth into the future is to make our economy more productive and resilient and our budget more sustainable and that's our focus.
