5232.0 - Australian National Accounts: Finance and Wealth, Sep 2018 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 13/12/2018   
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SEPTEMBER KEY FIGURES

FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES

Non-financial corporations
Financial corporations
General government
Household
Total National
Rest of world
$b
$b
$b
$b
$b
$b

Financing resources
Net saving (a)
-17.7
19.9
-3.3
23.8
22.8
12.6
plus Consumption of fixed capital
39.3
3.1
9.9
29.9
82.2
-
Gross saving
21.6
23.0
6.6
53.7
104.9
12.6
plus Net capital transfers
0.1
-
-0.7
0.4
-0.1
0.1
less Statistical discrepancy (b)
-
-
-
-
3.4
-
Total financing resources
21.7
23.0
6.0
54.1
101.4
12.8
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
50.2
3.4
14.9
43.5
112.1
-
plus Change in inventories
3.0
-
-0.1
-0.9
2.1
-
plus Net acquisition of non-produced non-financial assets
-0.5
-
0.4
-
-
-
Total capital formation
52.8
3.4
15.2
42.7
114.1
-
plus Financial investment
Acquisition of financial assets
18.0
-7.5
-5.7
47.7
-42.8
-31.6
less Incurrence of liabilities
56.5
-7.3
6.5
8.1
-31.6
-42.8
Net financial investment (Net lending (+) / net borrowing (-))
-38.5
-0.2
-12.2
39.6
-11.2
11.2
less Net errors and omissions
-7.4
-19.7
-2.9
28.2
1.5
-1.5
Total investment
21.7
23.0
6.0
54.1
101.4
12.7

- nil or rounded to zero (including null cells)
(a) Net saving for the Rest of world is the balance on the external income account.
(b) The statistical discrepancy is not able to be distributed amongst the sectors.

In the September quarter 2018, non-financial corporations funded their investments of $52.8b through both gross saving of $21.6b; and net borrowing of $38.5b, funded through share issuance mainly held by rest of the world. Overall the Australian economy borrowed $11.2b during the quarter, driven by the borrowings of the private non-financial sector.

Graph 1. Total capital formation, current prices

Graph 1 shows  Total capital formation, current prices


National investment decreased $5.9b in September quarter 2018 to $114.1b. The decrease comes off a peak in national investment of $120.0b in the June quarter 2018. National investment has been trending upwards since September quarter 2016, driven by public infrastructure investment as well as improvements in business conditions and confidence for private sector corporations. National investment previously peaked in September quarter 2012, after heavy investment by the mining industry.

Private non-financial corporations investment was $47.1b in the September quarter 2018, up $2.2b from the June quarter 2018 . Investment peaked for private non-financial corporations in the June quarter 2013, before falling to a low of $36.3b in March quarter 2017 with the decline in mining investment. Household investment was $42.7b in September quarter 2018, down slightly from $42.9n in June quarter 2018. Despite the fall this quarter, household investment remains at high levels and has been growing steadily since the $25.1bn recorded in March quarter 2012, driven by dwellings.

Graph 2. Net financial investment (Net lending (+) / net borrowing (-))

Graph 2 shows Net financial investment (Net lending (+) / net borrowing (-))



During September quarter 2018, national net borrowing was $11.2b, driven by the issuance of shares and other equity by private non-financial sector and decreased holdings of debt securities by banks.

Net borrowing of $38.5b by non-financial corporations is the largest since December 2015 and is a result of acquiring $18.0b of financial assets and incurring $56.4b in liabilities. Non-financial corporations incurred liabilities through loan borrowings and the issuance of shares and other equity.

Net borrowing of $0.2b by financial corporations was a result of disposing $7.5b of financial assets and extinguishing $7.4b in liabilities. The disposal of financial assets by financial corporations was driven by debt securities and derivative settlements and partly offset by issuance of loans. Financial corporations' reduction of liabilities was driven by maturities of one name paper issued offshore. These were partly offset by an increase in insurance technical reserves and acceptance of deposits.

Net borrowing of $12.2b by general government was a result of disposing $5.7b of financial assets and incurring $6.5b in liabilities mainly through bond issuance. The financial assets primarily disposed of by general government were shares and other equity and deposits.

Households were net lenders in September quarter 2018. Households acquired $13.9b in net equity in reserves of pension funds and life offices and $2.8b of unfunded superannuation claims. Households acquired $25.3b in deposit assets and incurred $11.6b in loan borrowings, the lowest level since September 2013.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)Release Date
December 201828 March 2019
March 201927 June 2019
June 2019 26 September 2019
September 201919 December 2019


CHANGES TO THIS ISSUE

Following ongoing quality assurance work a number of data quality issues have been identified with Table 52. Nominal Value of Short Term Loans and Placements Market ($ million) and Table 53. Nominal Value of Long Term Loans and Placements Market ($ million). These tables will be unavailable until further notice. However, Table 45. The Short Term Loans and Placements Market ($ million) and Table 46. The Long Term Loans and Placements Market ($ million), which are on a market value basis, are available.


REVISIONS IN THIS ISSUE

There have been revisions to previously published aggregates due to:
  • Quality assurance reviews affecting the published aggregates after September quarter 2016, in addition to amendments to data collected in the ABS Survey of Financial Information, ABS Survey of International Investment and to data derived from Australian Prudential Regulation Authority (APRA) administrative data sets.
  • Revisions to the sectoral capital accounts are due to more up-to-date data being incorporated and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

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