Australian Gross Domestic Product rose 0.6 per cent during the September quarter, driven by strong household spending.
According to figures released by the Australian Bureau of Statistics today, GDP has risen 5.9 per cent through the year.
Sean Crick, ABS head of National Accounts, said increased household spending, up 1.1 per cent, was the main driver of this growth.
“The September quarter was the fourth consecutive quarter of economic growth, following a contraction in the September quarter 2021, which was impacted by the COVID-19 Delta outbreak,” he said.
Growth was driven by a 5.5 per cent increase on spending on hotels, cafes and restaurants, a whopping 13.9 per cent increase in transport services spend, and vehicle purchases were up 10.1 per cent.
“Households continued to increase spending on domestic and international travel as COVID-19 travel restrictions continued to ease,” Crick explained.
“Spending on new vehicle purchases increased as international supply chain constraints eased, enabling an increase in vehicle imports.”
The household saving to income ratio fell for the fourth consecutive quarter — from 8.3 per cent to 6.9 per cent — historically a good sign when inflation is high.
“The household savings ratio continued to decline this quarter, moving towards pre COVID-19 pandemic levels.
“Higher levels of spending and increases in interest payable on dwellings detracted from household saving compared to the June quarter,” Crick said.
