I’m grateful again to OESR for its repackaging and analysis of ABS data, as its National Accounts State Details brief released yesterday contains a handy table unpacking the September quarter fall in State Final Demand of 1.6%. I’ve reproduced the relevant data in the chart below.
The decline in SFD in the September quarter was driven by broad based falls in dwelling investment and public final demand.
The State and Federal Governments contributed broadly the same amount to the slowdown in demand in the September quarter, with the State Government contributing only slightly more. In part, the Federal Government contribution is due to the finalisation of Nation Building stimulus projects, but no doubt the Federal Government’s budget surplus target will continue to restrain demand in future quarters.