The Australian economy grew 0.4% in seasonally adjusted chain volume terms in Q3 2019 and 1.7% through the year, according to the Australian Bureau of Statistics (ABS).
Chief Economist for the ABS, Bruce Hockman said: “The economy has continued to grow, however the rate of growth remains well below the long-run average.”
Net exports contributed 0.2 percentage points to growth in Q3. Domestic final demand remained subdued contributing 0.2 percentage points. Government spending was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.
The household sector remained relatively subdued, with dwelling investment recording its fourth consecutive decline with a fall of 1.7% during Q3. Household expenditure increased 0.1%, with weakness in spending on discretionary goods and services.
The household saving ratio rose to 4.8. The reduction to tax payable did not translate to a rise in discretionary spending, which led to a visible impact to household saving.
The rise in household gross disposable income was driven by a decline in income tax payable and interest paid on dwellings as well as continued rises in compensation of employees.