The best single measure of how the Australian economy is travelling is not real gross domestic product (GDP), but real domestic final demand (DFD), which is the sum of “government final consumption expenditure, household final consumption expenditure, private gross fixed capital formation and the gross fixed capital formation of public corporations and general government”.
Australia’s real DFD growth is shown below in seasonally-adjusted terms, split-out by the four key components: Household Consumption; Dwelling Investment; Business Investment; and Public Demand:
Real final demand slowed to just 0.9% in the year to September, dragged down by falling dwelling and business investment, as well as slower household consumption growth.
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