The Australian Bureau of Statistics (ABS) released economic data today. Here’s some of the key figures.
Growth
Australia’s economy grew by 0.3% in the September quarter 2024, marking the slowest annual growth rate since late 2020. This compares to a 0.8% growth rate in September 2023.
Year-on-year, gross domestic product (GDP) rose 0.8%, continuing a pattern of decelerating growth.
Katherine Keenan, ABS Head of National Accounts, said: “The Australian economy grew for the twelfth quarter in a row, but has continued to slow since September 2023.”
Public sector drives growth
Public sector investment surged 6.3%, reaching record levels. Key drivers included defence equipment imports, hospital upgrades, and infrastructure projects focused on roads and renewable energy. “The rise in public investment in the September quarter followed three consecutive quarterly falls. The level of investment this quarter was the largest on record,” said Keenan.
Government consumption rose 1.4%, bolstered by social benefits such as energy cost relief rebates.
Household spending stagnates
Household spending was flat in the quarter, following a 0.3% decline in June. Energy rebates contributed to a 16.7% fall in electricity and gas expenditure, but essential spending on rent, health, and education services increased. Disposable income grew 1.5%, supported by stage 3 tax cuts that reduced household income tax payments by 3.8%. The household saving ratio rose to 3.2%.
Trade and labour markets steady
Net trade contributed slightly to GDP growth, as goods exports increased 0.9% and imports fell 1.5%. However, services trade detracted, with fewer international students arriving and more Australians travelling abroad, particularly to Europe and Asia.
The labour market remained strong, with low unemployment and high participation levels, even as job vacancies continued to decline.
Inflation eases, wages slow
Annual inflation fell to 2.8%, the lowest level since 2021. Goods inflation dropped sharply to 1.4%, driven by lower electricity and fuel prices, while services inflation remained high at 4.6%, reflecting rising costs for rent and insurance. Wage growth slowed to 3.5%, following smaller increases in the minimum wage compared to 2023.
Economic challenges persist
GDP per capita declined 0.3% for the seventh consecutive quarter, highlighting ongoing pressures on living standards. The terms of trade (the ratio between the prices of exports and the prices of imports) also fell for the third quarter in a row, with export prices dropping due to reduced global demand for commodities.