What’s happening with the Australian Economy

What’s happening with the Australian Economy

Here are 12 things that happened in the Australian Economy during the March quarter. Our economy grew 0.2% and 2.3% compared to the same time last year. This was the sixth straight quarter of economic growth, though it was the weakest quarterly growth since the COVID -⁠19 Delta lockdowns in September quarter 2021. GDP per capita fell 0.2%. The labour market remained tight. The unemployed rate for the month of March was 3.5%.

And near 50 years low, more than 31 ,000 people found employment that month. And we downed tools over the summer. Around 43% of employees worked fewer hours than usual during January because many were on leave.

High inflation continued. The Consumer Price Index rose 1.4% during the March quarter and 7% compared to last year. The main drivers of the quarterly consumer price increase were medical and hospital services, gas, holiday travel and accommodation.

Inflation curbed our enthusiasm for shopping. Spending on discretionary items fell 1%. Furniture and household equipment purchases fell 2.4%. Total household consumption grew a modest 0.2% the slowest quarterly growth since the Delta lockdowns. And retail sales fell 0.6% during the March quarter. We also saved less. Even though we held back on discretionary spending, households only saved 3.7% of their income during the March quarter. This was the lowest proportion of household income being saved since the June quarter 2008.

Interest Paid On Mortgages During the Last Year

Interest paid on mortgages grew a further 11.5% during the quarter. The amount of money spent servicing mortgages more than doubled in the last year. And our pay packets continue to grow in response to tight labour market conditions, though real wages continue to fall due to the cost of living pressures. The wage price index rose 3.7% compared to last year.

The highest annual rise in more than a decade. And taxes rose. Income taxes paid by individuals rose 3.3% due to the strong labour market, while company tax rose 4.3%. Fewer new houses were built. Construction of new dwellings fell 1.3%. And trade weighed on economic growth with cars and mobile phone handsets driving our imports bill. Travel imports rose 7.1% as more of us visited overseas destinations close to home. Exports of meat grew 36.9% and that was due to improved supply conditions, while travel exports rose 17.5% as international students continued to return to our universities.

Strategies for Increasing Business Investment in Heavy Vehicles

Business investment was strong. Purchases of equipment such as heavy vehicles and cotton picking machinery grew 6%. Spending on infrastructure increased 3.1%, driven by electricity and transport projects.

Renewable Sources of Energy:

The switch to renewable sources of energy continued with a number of wind, solar and battery projects underway. Several large data centre and office projects also started. And finally, bank margins narrowed.