Download June quarter 2006 - Department of Treasury WA

ECONOMIC POLICY DIVISION
ECONOMIC NOTE
AUSTRALIAN NATIONAL ACCOUNTS – JUNE QUARTER 2006
Comment
June quarter 2006 Gross Domestic Product (GDP) data released by the Australian Bureau of Statistics
show that economic activity increased by 0.3% (in real terms) in the June quarter 2006 and by 2.7% over
2005-06.
The main components of GDP to support growth in economic activity across the nation came from
private consumption, business investment, dwelling investment and public investment.
These components all had broadly equal contributions to GDP activity over the June quarter, while over
2005-06 business investment was the largest contributor to growth (with strong investment in plant and
equipment the main contributor to business investment growth).
In year ended seasonally adjusted terms, GDP expanded by 1.8% over 2005-06, while in annual average
terms economic activity increased by 2.7%1.
Domestic activity (which includes public and private consumption, public and private investment and
dwelling investment) increased by 1.2% during the June quarter, significantly stronger than the 0.4%
expansion in the March quarter 2006. The strengthening in domestic activity was the result of increases
in public consumption, dwelling investment and business investment over the quarter.
Exports of goods and services increased by 1.4% during the June quarter, with imports rising by 2.2%.
Net exports (exports minus imports) marginally detracted from growth in the June quarter.
Activity varied across the nation’s major industries in the June quarter. Activity was strongest in the
construction industry (up 4.1%), personal and other services industry (up 3.6%) and the electricity, gas
and water supply industry (up 3.5%). Main areas where activity fell during the quarter were in
agriculture, forestry and fishing (down 4.9%) and communication services (down 1.8%).
CONTRIBUTIONS TO QUARTERLY GDP GROWTH*
GROSS DOMESTIC PRODUCT
Percentage Points
Australia
3.0%
8%
1.5
Quarterly Growth (LHS)
2.5%
Annual Average Growth (RHS)
6%
1.0
4%
0.5
Private
Consumption
Business
Investment
Change
in Stocks
GDP
2.0%
1.5%
2%
1.0%
0.0
0.5%
0%
-0.5
0.0%
-2%
-0.5%
Dwelling
Investment
Public
Demand
Net
Exports
-1.0
-1.0%
Jun-96
Jun-98
Jun-00
Jun-02
Jun-04
-4%
Jun-06
* Statistical discrepancy not represented
March Quarter 2005
June Quarter 2006
Source: ABS Cat. 5206.0
Details
Of the main components of GDP:
•
Private consumption contributed 0.3 percentage points to quarterly GDP growth and 1.5 percentage
points to annual GDP (growing 0.6% over the quarter and 2.6% over the year).
•
Dwelling investment also contributed 0.3 percentage points to quarterly GDP growth, growing 3.9%
over the June quarter 2006. This followed three quarters of declines (although quarterly dwelling
investment activity is somewhat volatile). In annual average terms, dwelling investment fell 2.1%
over 2005-06.
•
Business investment levels rose by 2.0% in the June quarter. In annual average terms, business
investment remains strong, growing by 15.7% over 2005-06 and contributing 2.1 percentage points of
annual GDP growth.
•
Public consumption rose by 1.1% over the June quarter and rose 2.6% over 2005-06.
Public investment increased by 3.4% in the June quarter and increased by 10.2% over 2005-06.
•
Exports of goods and services rose by 1.4% in the June quarter while Imports of goods and services
rose 2.2%. Exports contributed 0.3 percentage points to growth over the quarter with imports
detracting 0.5 percentage points. As a result, net exports detracted 0.2% from GDP growth in the
quarter. In annual average terms, exports rose by 1.9%, while imports grew by 6.9%.
•
Change in inventories, (one of the most volatile components of GDP), was a fall of $882 million in
the June quarter.
•
Compensation of employees (which is a broad measure of the total wages bill in the Australian
economy) rose by 2.0% in the June quarter and by 7.2% over 2005-06. Gross operating surplus
(a broad measure of profits) increased by 1.6% over the quarter and by 10.3% over the year.
•
The GDP implicit price deflator, (which is a measure of underlying inflationary pressures in the
Australian economy), rose by 1.5% in the June quarter and by 4.3% over 2005-06 (in year ended
terms).
GROSS DOMESTIC PRODUCT
%
Annual Average
(year ended) change
%
135,732
42,328
0.6
1.1
2.6 (2.4)
2.6 (2.8)
35,670
18,642
9,659
242,030
-882
2.0
3.9
3.4
1.2
n/a
15.7 (10.8)
-2.1 (-2.2)
10.2 (10.5)
4.2 (3.7)
n/a
42,592
52,068
-9,476
-417
1.4
2.2
n/a
n/a
1.9 (1.7)
6.9 (6.7)
n/a
n/a
231,255
0.3
2.7 (1.8)
Jun Qtr 2006
$ Million
Final Consumption Expenditure
-Private
-Public
Gross Fixed Capital Expenditure
-Business Investment
-Dwelling Investment
-Public investment
Domestic Final Demand
Change in Stocks
External Demand
Exports of Goods and Services
Less: Imports of Goods and Services
Net Exports
Statistical Discrepancy
Gross Domestic Product
Quarterly Change
Note: ABS National Accounts data are subject to substantial revisions each quarter.
All figures are expressed in real, seasonally adjusted terms unless otherwise stated.
The reference year for all real (i.e. chain volume) data is 2004-05. Accordingly, all value data is in 2004-05 prices.
1. Annual average is the change in the average of all four quarters of one year on the average of all four quarters of the previous year.
Year ended is the change in one quarter of one year on the corresponding quarter in the previous year.
2. Other investment includes mineral and petroleum exploration and computer software, livestock and intangible fixed assets.
6 September 2006
For further information contact Jessica Crombie on 9222 9196, or e-mail at [email protected]
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