+1 Added to my documents.
Please be aware your selection is temporary depending on your cookies policy.
Remove this selection here

Australia Q2 GDP

Australian economic growth has picked up, growing by 3.4% year on year (3.1% in Q1), the fastest pace since September 2012.

On a quarterly basis GDP was up 0.9% (1.1% in Q1, upwardly revised, as well as Q3 and Q4 2017).

Domestic demand growth (up 0.6% qoq) accounted for more than half of total GDP growth.

Major contributor was consumer spending (up 0.7% over the quarter, 3% in annual terms, contribution 0.4%) with increased expenditure on both discretionary and non-discretionary goods and services. The household sector, under pressure due to subdued wage growth and falling housing prices, likely financed spending by using savings (household savings rate declined to just 1%, a low since 2007, with spending up 0,9% and disposable income up only 0.4%).

Residential construction was also another strong contributor. Investment in new dwellings moved up to 3.6% in the quarter. This strength was reflected in the Construction industry, up 1.9% in Q2.

Net exports contributed a more modest 0.2% (main driver in Q1).

Government consumption was stronger (1% qoq) up 5.1% in FY 2018, due to elevated levels of public investment, reflecting infrastructure projects across the nation.

Mining investment was up 5.1% qoq (first time since Q1 2017, in fact in yoy terms it is down 9.7%), driven by  capital investment on machinery and equipment by mining firms and an increase in petroleum exploration expenditure.

Non-mining investment decreased 2.4% in Q2, driven by machinery and equipment, likely a payback from strong growth in the previous quarter. Non-mining investment is up 17.7% through the year.

USARDI Annalisa , Senior Economist
VANIN Gregorio , Macroeconomic Research
Send by e-mail
Australia Q2 GDP
Was this article helpful?YES
Thank you for your participation.
0 user(s) have answered Yes.