Economy grew 0.2% during June quarter
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The news: The Australian economy grew 0.2% in the June quarter, below expectations of 0.3% for the quarter, according to new figures from the Australian Bureau of Statistics (ABS).
The numbers: This was the eleventh consecutive quarter of growth but the ABS noted it was slowing and was the weakest it has been since 1991 to 1992, excluding the pandemic.
The economy grew 1.5% over the financial year but 1% on an annual basis.
Household spending fell 0.2%, stripping 0.1 percentage points off the final GDP figure. The household savings ratio remained steady at 0.6%. On an annual basis the savings ratio is at its lowest since 2006-07.
Meanwhile, the terms of trade fell 3%. GDP per capita declined 0.4% as population growth outstripped economic growth. This was the sixth consecutive quarter of a per capita decline.
Government spending was up 1.4% while total investment fell 0.1%.
The context: The final figure follows days of intense focus on Treasurer Jim Chalmers' relationship with the Reserve Bank, after he described global volatility and high interest rates as responsible for "smashing the economy". He has since said he has a close working relationship with the central bank and they are aligned in the fight against inflation. Chalmers will give a press conference at 12:30pm AEST.
What they said: "Spending on many discretionary categories fell in the June quarter. This followed a relatively strong result in the March quarter, which included a number of sporting, gambling and music events," said ABS head of national accounts Katherine Keenan.
"The strongest detractor from growth was transport services, particularly reduced air travel. This was the first fall for this series since the September 2021 quarter," she said.
"Excluding the Covid-19 pandemic period, annual financial year economic growth was the lowest since 1991-92 — the year that included the gradual recovery from the 1991 recession."
The source: ABS media release
