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Australian economy grows 0.9 pe...

Australian economy grows 0.9 per cent

The latest figures from the Australian Bureau of Statistics (ABS) show that GDP, in seasonally adjusted chain volume terms, grew 0.9 per cent in the September quarter of 2015.

According to the figures laid out by the ABS, the largest contribution to economic growth this quarter was the export of goods and services.

The percentage of growth for these exports was up by 4.6 per cent, making it a massive contribution to the overall economic growth.

Regarding the increase of exports, they were mostly concentrated in mining commodities, which have been reflected by an upshot in mining activity in the country.

This was an unexpected positive growth in the economic sector as mining activity had taken a sharp decline in June of this year.

Not just limited to mining, the broader economy has seen strength in household final consumption expenditure.

Expenditure in this area has increased by 0.7 per cent, with new and used dwelling construction enjoying an even more positive upwards spiral of 2 per cent.

Although the Australian economy looks to be enjoying a swell, the increase is marginal when all aspects are considered.

There are still areas of the economy that are weak and are dragging down the average percentage rise of growth as a result.

The ABS has found that gross fixed capital formation was the major reason for weakness in the domestic economy.

A decline in the interest in mining related construction is the main issue for the struggling domestic economy, despite the industry's strong export results.

In terms of figures, engineering construction in the mining industry reports as having decreased by a massive 7.1 per cent.

Although there are difficulties with certain parts of the domestic economy, the overall economy has enjoyed an uplift and all eyes are looking towards a positive final quarter.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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