Thursday 13th Dec, 2018

Slow growth in December quarter


ECONOMIC growth of 0.4% was reported during the 2017 December quarter, the Australian Bureau of Statistics has reported.

ABS chief economist Bruce Hockman said quarterly growth was driven by the household sector, with strength in household income matched by household consumption growth.

Mr Hockman noted some improvement for workers with compensation of employees (COE) rising 1.1% in the quarter, the fourth consecutive quarter of “solid growth”.

“The increase in wages is consistent with stronger employment data reported, as well as a lift in the growth rate in the wage price index observed over the past two quarters,” he said.

Household consumption rebounded to 1% in the quarter.

Net trade reportedly detracted from growth due to falls in exports of rural goods, transport equipment and travel services.

This was reflected in the agriculture and manufacturing industries which were reportedly the largest detractors from GDP in the quarter.

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