MNI BRIEF: Aussie Q4 GDP Up 0.8%

Australian GDP rose 0.8% in the December quarter and 2.6% year-on-year, according to National Accounts data released by the Australian Bureau of Statistics, with GDP per capita up for a fourth consecutive quarter, rising 0.9% from a year earlier.

“There was broad-based economic growth in the quarter, with rises observed in a large majority of industries,” said Grace Kim, head of National Accounts at the ABS. “Public and private demand each contributed 0.3 percentage points to GDP growth.”

Household spending increased 0.3% in the quarter and 2.4% through the year.

Discretionary spending rose 0.4%, reflecting an expansion of Black Friday sales and strong attendance at sporting and concert events. Spending on essential goods and services grew 0.2% in the quarter. Essential services rose 0.4%, partly offset by a 0.5% decline in spending on essential goods.

Expenditure on electricity, gas and other fuels fell 9.5%, driven by lower electricity usage, which detracted 3.3 percentage points, and reduced out-of-pocket costs due to government rebates, which detracted 6.2 percentage points. Electricity rebates are recorded as government expenditure. Excluding electricity, household spending rose 0.4%.

State and local government spending increased 1.0%, reflecting higher outlays on electricity rebates and employee expenses across health, education and policing. Commonwealth expenditure rose 0.8% in the December quarter.