Gross fixed capital formation dropped by 2.7 percent, substracting 0.7 percentage points from growth. Private investment fell 0.8 percent, driven by a 1.4 percent decline in dwelling, a 4.9 percent fall in ownership transfer costs and a 1.3 percent drop in non-dwelling construction. Private investment in new buildings detracted 0.3 percentage points from GDP growth, while new engineering and new and used dwellings detracted 0.2 and 0.1 percentage points respectively. Public investment decreased 10.4 percent and detracted 0.5 percentage points from growth, as state and local general government fell 13.0 percent and total national general government declined by 16.8 percent.
Exports of goods and services went up 0.3 percent while imports of goods and services grew at a faster 1.3 percent. Net exports detracted 0.2 percentage points from GDP growth. The change in total inventories was an increase of AUD 1,053 million in seasonally adjusted terms compared to a rise of AUD 435 million in the last quarter, contributing 0.1 percentage points to GDP. This increase was driven by a rise in wholesale trade and retail inventories.
In the September quarter, final consumption expenditure grew by 0.3 percent. Household spending rose 0.4 percent, driven by a rise in hotels, cafes and restaurants: +2.2 percent and insurance and other financial services: +1.3 percent. Meanwhile, government expenditure shrank 0.2 percent.
By industry, mining declined by 0.8 percent (due to a drop in exploration and mining support services: -7.2 percent, other mining: -3.1 percent, oil and gas extraction: -1.3 percent and coal mining: -0.5 percent), followed by construction (-3.6 percent, driven by falls in all subdivisions), retail trade (-0.8 percent, due to a drop in food retailing) and rental, hiring and real estate services (-2.4 percent, driven by property operators and real estate services). In contrast, growth was seen in agriculture, forestry and fishing (+7.5 percent, driven primarily by rises in grains, cotton and livestock output) and information media and telecommunications (+1.6 percent, driven by rises in telecommunications and internet services).
Through the year, the economy grew by 1.8 percent, slowing sharply from a 3.3 percent expansion in the June quarter while market estimated a 2.5 percent growth. It was the weakest growth since the third quarter 2009.
Real net national disposable income increased by 0.8 percent quarter-on-quarter, up from a 0.5 percent rise in the June quarter, largely supported by a 4.5 percent increase in terms of trade. The terms of trade experienced its first consecutive quarterly increase since September quarter 2011.