Source : Craig James — Chief Economist (Author) — Twitter: @CommSec

Another quarter of growth: The record-breaking economic expansion is in its 23rd year. The Australian economy grew by 1.1 per cent in the March quarter (fastest rate in two years) after a 0.8 per cent increase in the December quarter (forecasts centred on a 0.9-1.0 per cent rise). The economy has grown 3.5 per cent over the past year, above the decade-average growth rate of 2.9 per cent and the 15-year average of 3.1 per cent.

Contribution to growth: The biggest contributions to growth came from net exports (+1.4 percentage points) followed by household consumption (+0.3pp), dwelling investment (+0.2pp) and government consumption & private equipment investment (both +0.1pp). The biggest drag on growth as by inventories (-0.6pp).

States & territories: The Bureau of Statistics has ceased publishing data on state & territory exports & imports. In terms of state final demand, NSW had the fastest quarterly growth in the March quarter (up 2.4 per cent), followed by Tasmania (up 0.8 per cent), Victoria (up 0.7 per cent). State final demand fell the most in the Northern Territory (down 6.5 per cent) followed by Western Australia (down 1.5 per cent), Queensland (down 0.8 per cent), the ACT (down 0.2 per cent) and South Australia (down 0.1 per cent).

Industry sectors: Twelve of the 19 industry sectors expanded in the March quarter, led by Mining, up 8.6 per cent. Productivity: Gross value added per hours worked in the market sector rose by 1.0 per cent in the March quarter after 0.9 per cent growth in the December quarter. Annual productivity growth stands at 2.7 per cent.

Household spending: Only six of the 17 sectors recorded weaker spending in the quarter. Household spending rose by 0.5 per cent in the March quarter after 0.8 per cent growth in the December quarter. Annual growth stands at 2.8 per cent. Hotels, cafes & restaurants rose by 3.6 per cent but Cigarettes & tobacco fell the most, down by 7.6 per cent.

Follow Us Google Plus — Twitter — Facebook