GDP drops by 0.5%

The September GDP figures released on the 7th of December show that the seasonally adjusted GDP has had a -0.5% change during the quarter from June to September. It is the second biggest drop in quarterly growth in the last 15 years. It is the fourth negative quarter since 1991. It leaves Australia at risk of its first recession — defined as a period of two straight negative readings on growth — in 25 years when fourth quarter numbers are revealed in February.

The drop can be in part accounted for reduced government spending on infrastructure, which accounted for 0.1% of the 0.5% drop. Slides in business investment and construction also contributed to the drop.

However, the real net national disposable income per capita, a measure of living standards, climbed in the September quarter by 0.5%, to be up to 1.7% over the year. Consumer spending added 0.3 points to the change in GDP.

 

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