Australia posts steady 0.4% GDP growth in September quarter

ABS head of National Accounts Grace Kim said the result “matches the average quarterly growth since the end of the COVID-19 pandemic”, signalling continued economic stability.

GDP per capita was flat, with population gains keeping pace with overall output, though it remained 0.4 per cent higher than a year earlier. Household spending rose 0.5 per cent following a stronger 0.9 per cent increase in the June quarter. Discretionary spending slipped 0.2 per cent after a robust rise driven by the extended Easter break and end-of-financial-year sales, yet remained 2.3 per cent higher over the year.

Net trade slightly weighed on growth, subtracting 0.1 percentage points as imports climbed 1.5 per cent and exports rose 1.0 per cent. Fuel and lubricant imports surged 9.8 per cent, while a 6.7 per cent rise in capital goods reflected strong demand for computer equipment linked to data-centre expansion. Export growth was supported by increases in both rural and non-rural goods, while services exports were broadly unchanged, the ABS said in a media release.

Gross disposable income rose 1.7 per cent, outpacing the 1.4 per cent increase in nominal household spending. Higher compensation of employees, boosted by minimum wage rises, bonuses and redundancy payouts in the private sector, alongside stronger superannuation investment income, contributed to the gain, partly offset by increased income tax payable.

ALCHEMPro News Desk (KD)