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The Australian Bureau of Statistics (ABS) on Tuesday reported a 0.9% increase in public sector demand in the December quarter, which was estimated to contribute 0.3 percentage points to GDP for the quarter.
Public demand, which comprises all federal, state and local government spending and investment, totalled $198 billion in the three months to December.
UBS chief economist George Tharenou noted that “public demand data today is now finally more consistent with other indicators we flagged as signalling nominal government spending is booming, and the overall fiscal policy stance is stimulatory”.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.