Australia's economy expanded by 0.2% in the June quarter, with a 1.5% rise for the 2023-24 financial year, according to the Australian Bureau of Statistics.
Katherine Keenan, ABS Head of National Accounts, noted that this marks the eleventh consecutive quarter of growth, although the pace has slowed compared to previous years. Excluding the pandemic period, annual growth was the lowest since 1991-92.
GDP per capita fell for the sixth quarter in a row, down 0.4%, as household spending decreased by 0.2%, affecting GDP growth negatively.
The decline in spending was driven by reduced expenditure on discretionary items and a drop in transport services, particularly air travel, which saw its first decline since September 2021.
Government spending increased by 1.4%, bolstered by national non-defence spending, particularly in health services and local government expenses.
In contrast, total investment decreased by 0.1%, marking the third consecutive quarter of decline.
Private sector investment in machinery and equipment fell 1.6%, though this was partially offset by a 3.9% rise in ownership transfer costs due to strong property market activity. Despite the recent downturn, annual total investment grew by 4.1%.
Services exports contributed positively to growth, rising 5.6% in the June quarter, driven by increased spending in education-related travel.
However, changes in inventories reduced growth by 0.3 percentage points, with notable declines in wholesale and manufacturing inventories.
Prices remained stable, with both real and nominal GDP up 0.2% in the June quarter, reflecting a flat GDP implicit price deflator.
Export prices fell 3.0% due to declining commodity prices, while import prices remained unchanged.
Domestic price growth was supported by strong performance in services and construction.
The household saving ratio held steady at 0.6%, with gross disposable income increasing by 0.9%, outpacing nominal household spending, which grew by 0.7%.
Despite this, the annual saving ratio dropped to 0.9%, the lowest since 2006-07, as spending surged 5.9% compared to a 4.1% rise in gross disposable income.