Net trade contributed positively to the quarter's GDP growth, adding 0.6 percentage points, thanks to a notable 3.4 per cent decline in imports. The fall in goods imports, which dropped by 2.8 per cent, was particularly evident in consumption and intermediate goods. On the other hand, exports decreased slightly by 0.3 per cent, primarily due to a 0.4 per cent reduction in goods exports.
The quarter also saw a $2.7 billion decrease in inventories, which detracted 0.3 percentage points from the GDP growth. This decline in inventories was partly attributed to the fall in goods imports, affecting wholesale and retail inventories as businesses opted not to replenish stock levels during the period, as per ABS.
Household spending experienced a slight increase of 0.1 per cent in the December quarter, with all essential categories seeing growth. Compensation of employees saw a more significant boost, rising by 1.4 per cent over the quarter and 8.4 per cent since December 2022, reflecting continued income growth amidst the economic conditions.
ALCHEMPro News Desk (DP)
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