Economic conditions sluggish

Latest ABS figures show.

The Australian economy grew just 0.2% in seasonally adjusted chain volume terms in the December quarter 2018, according to figures released by the Australian Bureau of Statistics (ABS).

ABS chief economist, Bruce Hockman said, “Growth in the economy was subdued, reflecting soft household spending and a decline in dwelling investment. The approvals for dwelling construction indicate that the decline in dwelling investment will continue.”

Household spending grew by 0.4%, reflecting a continuation of modest spending in recent quarters while investment in dwellings fell 3.4%.

Government final consumption expenditure grew 1.8%, with ongoing expenditure in health, aged care and disability services. This investment translates to ongoing strength from the healthcare industry, which remains the largest contributor to economic growth.

Public demand sustained growth in the quarter as investment remained at high levels with State and Local government growth of 6.3% reflecting continued work on a number of large infrastructure projects.

“As the economy transitions out of the mining boom, investment has remained strong with major public works driving growth around Australia,” Hockman said.

Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *

*