|According to figures recently released by the Australian Bureau of Statistics (ABS), the Australian economy grew 0.4% in seasonally adjusted chain volume terms in Q4 2017.
Commenting on the statistics, ABS Chief Economist, Bruce Hockman, said: “Growth this quarter was driven by the household sector, with continued strength in household income matched by growth in household consumption.”
Compensation of employees (CoE) increased 1.1% in Q4, the fourth consecutive quarter of solid growth. The increase in wages is consistent with stronger employment data reported in Labour Force, as well as a lift in the growth rate in the wage price index observed over the past two quarters.
Household consumption rebounded to 1.0% in Q4, with strength recorded in discretionary spending on hotels, cafés, restaurants, recreation and culture. Private investment detracted from growth due to a decline in dwellings and a sharp fall in new engineering construction. However, private investment in machinery and equipment remained strong, as did construction of non-residential buildings. Healthcare and service-based industries continued to grow reflecting increased demand from the household sector.