Qld economy traveling nicely based on June quarter National Accounts data

Just a quick update on the June quarter National Accounts released by the ABS today. GDP growth was a healthy 0.8 percent in the June quarter, or around 3.3 percent in annualised terms, which I suspect is around the sustainable trend growth rate of the national economy. And the Queensland result was very positive, with State Final Demand increasing 1.1 percent in June quarter, driven by an encouraging boost in business investment and household consumption (see my chart decomposing the State Final Demand growth below).

Decomp_Jun17

Here’s the ABS’s very good summary:

Queensland’s state final demand increased by 1.1% in the June quarter and follows a 0.2% increase in the March quarter. Private gross fixed capital formation drove the increase, in turn driven by an increase in total machinery and equipment. Household final consumption expenditure also contributed strongly to growth. There was a marginal increase in government final consumption expenditure although this was partially offset in state final demand by a weak fall in public gross fixed capital formation.

You might also be interested in this excellent podcast from Michael Knox, Chief Economist of Morgans, released prior to the National Accounts this morning:

Why the Australian economy will turn around

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