December Quarter GDP Softer than Forecast as Household Consumption Slows: CCIQ

Wednesday 6 March, 2019 | By: Thomas Birkbeck

The Australian National Accounts (GDP) data released by the Australian Bureau of Statistics showed the Australian economy grew at a subdued rate of 0.2% for the fourth quarter (2.3% p.a.) as sluggish consumer spending and private sector investment dragged on the overall economy

The Chamber of Commerce and Industry Queensland (CCIQ) notes the latest data factors in the country’s reliance of government spending which contributed to more than half of Australia’s growth over the last 12 months.

Queensland was the best performing region nationally with state final demand increasing 0.9% over the quarter and supported by stronger growth in government spending.

CCIQ Head of Industry, Dan Petrie said the report can be summarised in two parts; the mixed performance of the private sector across the states and the accommodating fiscal policy stance currently being undertaken by state governments.

“Federal and State government spending is helping to maintain Australia’s record economic run whilst a softer underbelly in the private sector is becoming somewhat more apparent.

“The household savings ratio of 2.5 per cent down from around 10 per cent only a decade ago and weaker consumption data only underscores the challenging outlook for the state’s private sector,” Mr Petrie said.

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