Queensland economy showing signs of improvement

Wednesday 7 December, 2016

The Queensland economy continues to show signs of improvement.

Activity in the economy increased by 0.1 per cent in September 2016, representing three consecutive quarters of growth for the Sunshine State.

CCIQ Policy Analyst Cameron Meiklejohn said a decrease in activity across the public sector was offset by improvements in both household consumption and capital investment.

Household consumption increased by 0.7 per cent, to record a quarterly increase of 1.0 per cent, while fixed capital expenditure rose by 2.1 per cent to reach its highest quarterly increase since the June quarter 2012.

"The growth in economic activity highlights the momentum shift that has been seen in the Queensland economy across recent months, with improving conditions in retail and tourism beginning to flow through to improved expenditure, particular at a household level," he said.

"This growth is particularly encouraging given that the volume of economic activity decreased at a national level across the September quarter."

Nationally, the figures contracted by 0.5 per cent and this means that if the economy shrinks again next quarter, Australia will be in a technical recession.

The latest data is consistent with what small businesses have been telling CCIQ in response to the monthly Queensland Economic Update and the quarterly CCIQ Suncorp Pulse Survey of Business Conditions.

Small business owners across Queensland can sense economic momentum building, but will need more than three months of improving conditions before they are convinced the economy has turned the corner and is back on track, according to our latest research.

The third Queensland Economic Update, conducted by the Chamber of Commerce and Industry Queensland (CCIQ), has again shown signs of improvement for the local economy and is supported by other state and national economic data.

However, a summer of content is far from certain as the business community maintains a very cautious outlook.

CCIQ has also predicted bumper Christmas retail sales across the state, with a near 4 per cent improvement to $9.3 billion.