September Quarter GDP Softer than Forecast as Household Consumption Slows: CCIQ
The September National Accounts (GDP) data from the ABS shows the Australian economy grew at a modest rate of 0.3% for the third quarter (2.8% p.a.) as consumer spending slowed and private sector investment in Queensland dragged on the nation’s overall economic performance.
The Chamber of Commerce and Industry Queensland (CCIQ) notes the latest data factors in Australia’s elevated trade performance in the September quarter whilst private sector activity remained subdued over the same period.
CCIQ Chief Economist, Dr Marcus Smith 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.
“In broad terms it is government spending from Federal and State governments that has helped maintain Australia’s record economic run whilst a softer underbelly is becoming somewhat more apparent.
“The household savings ratio of 2.6 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,” Dr Smith said.
CCIQ notes that Queensland’s state final demand was the worst performing of the Australian states and places additional pressure on policy makers for a more aggressive response.