The economy posted its slowest annual growth in a decade, according to GDP numbers out on Wednesday, growing at 1.4 per cent, down from 1.8 per cent. Across the country, the figures show that household consumption growth slowed in the quarter to 0.4 per cent, and moderated to 1.4 per cent on an annual basis. A breakdown of the expenditure measures of GDP shows government consumption, rose 2.7 per cent in the quarter and contributed 0.5 of a percentage point to growth, while household consumption contributed just 0.2 of a percentage point to GDP. Net exports added 0.6 of a percentage point.Overall a 1.6 per cent drop in private investment for the June marked the largest fall in three years. Mining investment rose 2.4 per cent in the quarter, the first increase since June 2018, but non-mining investment fell 1.8 per cent. Dwelling investment plunged -4.4 per cent for the quarter or -9.1 per cent in annual terms. A component of GDP is the state based consumption figures and is measured by State Final Demand. The following charts show the State Final Demand (Seasonally Adjusted) for All states with the annual figure on the left and the quarterly change on the right. All States Australia’s domestic final demand increased 0.3%. Government final consumption expenditure (2.7%) was the largest contributor to growth. Household final consumption expenditure rose 0.4%. Private gross fixed capital formation detracted from growth, with falls in dwelling investment (-4.4%) and non-dwelling construction (-5.9%). New South Wales New South Wales’ state final demand was flat in the June quarter. Final consumption expenditure contributed to growth with rises in household and government consumption expenditure. These rises were offset by a decline in state and local investment, which fell 8.6% during the quarter but remains at elevated levels. Dwelling investment decreased for the fourth consecutive quarter and is down 4.2% in 2018-19. Victoria Victoria’s state final demand increased 0.5% for the quarter. This result was driven by public final demand with rises in both government consumption expenditure (4.2%) and investment (3.9%). The rise in government consumption expenditure was driven by ongoing spending on health services. Investment was driven by state and local general government with continued investment in infrastructure. Private investment declined 3.2%, driven by non-dwelling construction with falls in new building and new engineering construction. The decline in new building follows two consecutive rises and remains at elevated levels. The fall in new engineering construction reflects declines in energy related projects. Queensland Queensland’s state final demand was flat in the June quarter. Consumption expenditure contributed to growth with strength in both government (4.1%) and household (0.7%) consumption expenditure. State and local consumption expenditure drove growth with spending related to flood remediation work. Household consumption expenditure was driven by both essential and discretionary spending. Private investment detracted from growth, driven by falls in dwelling investment. Western Australia Western Australia’s state final demand increased 0.8% for the quarter. Investment in machinery and equipment (19.8%) drove growth with continued investment in automation by mining. The main detractors from growth were private non-dwelling construction (-5.3%) and state and local consumption expenditure (-2.9%). South Australia South Australia’s state final demand decreased 0.2% for the quarter. Weakness in non-dwelling construction (-6.6%) was driven by falls in energy related projects. Household consumption expenditure partly offset this fall, driven by increased spending on discretionary items. Tasmania Tasmania’s state final demand increased 0.3% for the quarter. This result was driven by government consumption expenditure, particularly national non-defence spending. Dwelling investment increased (10.1%), the strongest rise across all states and territories. Public investment declined for the quarter (-8.4%) but remains at elevated levels with strong growth through the year (7.2%). Northern Territory Northern Territory’s state final demand decreased 0.6% for the quarter. State and local general government investment fell 34.2% due to decreased investment in new assets and net sales of second-hand assets. Private dwelling investment continued to decline, falling 24.8%. Government (1.9%) and household (0.2%) consumption expenditure partly offset these declines. Australian Capital Territory Australian Capital Territory’s state final demand increased 0.8% for the quarter. National non-defence government consumption expenditure was the largest contributor to growth. Private investment detracted from growth with falls in dwelling investment (-8.8%) and machinery and equipment (-19.0%). The general government investment declined 5.0%.
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