Australian GDP 0.5%

The Australian Bureau of Statistics has released June quarter National Accounts and the news is growth is well down on Q1 but has come in much better than feared only last week at 0.5% for the quarter and 3.1% for the year:

JUNE KEY FIGURES

		Mar Qtr 2014 to Jun Qtr 2014	Jun Qtr 2013 to Jun Qtr 2014
		% change	% change

GDP (Chain volume measure)
	Trend	0.7	3.2
	Seasonally adjusted	0.5	3.1
Final consumption expenditure (Chain volume measure)
	Trend	0.5	2.2
	Seasonally adjusted	0.5	2.2
Gross fixed capital formation (Chain volume measure)
	Trend	0.8	-1.7
	Seasonally adjusted	0.3	-0.9
GDP chain price index
	Original	-0.5	0.5
Terms of trade
	Seasonally adjusted	-4.1	-7.9
Real net national disposable income
	Trend	0.4	1.6
	Seasonally adjusted	-0.2	1.0

A few surprises in the composition:

Consumption managed to eke out a gain and private investment added to growth in a rare pause in the capex cliff. Really, without inventories, it’s a shocker but will no doubt not be reported thus.

Much more to come.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.