Australian GDP disappoints as private sector sags, gubmint booms

The ABS has released June QTR national accounts and the news is Botox but no boom (given expectations had soared):

JUNE KEY FIGURES

		Mar Qtr 2017 to Jun Qtr 2017	Jun Qtr 2016 to Jun Qtr 2017
		% change	% change

GDP (Chain volume measure)
	Trend	0.7	2.1
	Seasonally adjusted	0.8	1.8
Final consumption expenditure (Chain volume measure)
	Trend	0.7	2.7
	Seasonally adjusted	0.8	2.6
Gross fixed capital formation (Chain volume measure)
	Trend	1.4	2.7
	Seasonally adjusted	1.5	1.8
GDP chain price index
	Original	-1.1	4.7
Terms of trade
	Seasonally adjusted	-6.0	14.9
Real net national disposable income
	Trend	0.6	5.1
	Seasonally adjusted	-1.0	4.0

Looks like private investment came up short, households were weak while gubmint just can’t spend enough adding 3.2% annualised in GDP all by itself:

Good luck raising interest rates on that dying private economy.

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.