Yesterday’s GDP results highlight Australia’s multi-speed economy, with some sectors significantly outperforming others.
According to data from the Australian Bureau of Statistics, total GDP growth was 1.2 per cent for the June quarter.
Housing Industry Association senior economist Andrew Harvey said the majority of this growth could be attributed to the rebound in Queensland.
“There is also a large run-up in inventories which could be due to sales being lower than expected in some sectors,” he said.
“What the result does show is that the divergence between the performance of various sectors remains. New dwelling investment detracted 0.1 percentage points from growth in the June quarter, while machinery and equipment investment contributed a substantial 0.3 percentage points to quarterly growth.
“The divergence of economic fortunes between sectors should not be ignored under the banner of structural adjustment - policy makers do need to look at what can be done to stimulate those sectors doing it tough as the mining juggernaut rolls through town.”
New housing expenditure fell by 1.9 per cent in the June 2011 quarter, offsetting a 2.5 per cent increase in expenditure on alterations and additions, with total dwelling expenditure making no contribution to growth in the June quarter.
In terms of the broader economy, the 1.2 per cent quarterly GDP growth takes Australia’s annual growth rate over 2010-11 to a very modest 1.4 per cent.