5206.0 - Australian National Accounts: National Income, Expenditure and Product, Dec 2016 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 01/03/2017   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

ANALYSIS


NOTE

All percentage movements are in current prices seasonally adjusted terms unless otherwise specified.


AUSTRALIAN ECONOMY GROWS BY 1.1%

In chain volume seasonally adjusted terms, Australian Gross Domestic Product (GDP) grew by 1.1% in the December quarter 2016, following a contraction of 0.5% in the September quarter. Through the year growth is positive at 2.4%.

GROSS DOMESTIC PRODUCT, Volume measures: Seasonally adjusted
Diagram: This graph shows the seasonally adjusted volume measures for gross domestic product



NOMINAL GDP EXHIBITS RAPID GROWTH

Nominal GDP grew at a rate of 3.0% this quarter. This was the strongest rise in Nominal GDP since June quarter 2010 and is largely due to strong prices received for key commodity exports.

GROSS DOMESTIC PRODUCT, Current prices: Seasonally adjusted
Diagram: This graph shows the seasonally adjusted current prices for gross domestic product



DRAMATIC IMPROVEMENT IN BALANCE ON EXTERNAL INCOME

The Balance on external income, which reflects net income paid to non residents, improved sharply this quarter due to record export receipts. The Balance on external income is at its lowest level since September quarter 2001.

BALANCE ON EXTERNAL INCOME ACCOUNT, Current prices: Seasonally adjusted
Diagram: This graph shows the seasonally adjusted current prices for balance on external income account



GROSS OPERATING SURPLUS BOOSTED BY STRONG EXPORT PRICES

Private non-financial corporations gross operating surplus (GOS) rose 16.5% this quarter. A significant rise in export prices accompanied with strong demand for resources and minerals contributed to this result in GOS. The strength in export prices can be observed in the Terms of trade, which was also up 9.1% this quarter. This was the strongest growth rate experienced in the Terms of trade since June Quarter 2010.

PRIVATE NON-FINANCIAL CORPS GOS VS TERMS OF TRADE, Seasonally adjusted
Diagram: This graph shows the seasonally adjusted figures for private non-financial corps GOS verses Terms of trade



COMPENSATION OF EMPLOYEES DECLINES

In current price terms, Compensation of employees (COE) fell by 0.5% this quarter. This is the first fall in COE since September quarter 2012. Through the year growth of COE moderated to 1.5%. This result is supported by the record low through the year growth of 1.9% observed in the December quarter 2016 Wage Price Index (Wage Price Index, Australia (Cat. No. 6345.0)).

COMPENSATION OF EMPLOYEES, Current prices: Seasonally adjusted
Diagram: This graph shows the seasonally adjusted current prices for compensation of employees



HOUSEHOLD SAVING FALLS

The Household saving ratio was 5.2% in seasonally adjusted terms in December quarter 2016, down from the 6.3% recorded last quarter. This decline was driven by weak growth in household Gross disposable income of 0.2% while household spending lifted to 1.2% from subdued growth of 0.6% in the previous quarter.

HOUSEHOLD SAVING RATIO, Quarterly: Seasonally adjusted
This graph shows the quarterly seasonally adjusted household saving ratio