Australian gross domestic product (GDP) rose just 0.1 per cent in the March 2024 quarter and was up 1.1 per cent since March 2023.
This is according to new figures released by the Australian Bureau of Statistics (ABS), which also shows that the gross value added (GVA) by retail declined quarter-on-quarter by 0.2 per cent, joining six other industries that also recorded negative growth in GVA.
Overall gross value added (GVA) rose 0.1 per cent, with rises in 11 out of 19 industries. Non-market service industries rose in the March quarter, led by arts and recreation at 2.7 per cent.
The falls in GVA were recorded in construction (2.6 per cent), other services (2 per cent), accommodation and food services (1.5 per cent), information media and telecommunications (1.5 per cent) and administrative services (0.5 per cent).
The only other non-services industry to record a fall in GVA was wholesale trade, down 2 per cent.
ABS head of national accounts Katherine Keenan said GDP growth was weak in March, with the economy experiencing its lowest through the year growth since December 2020.
“GDP per capita fell for the fifth consecutive quarter, falling 0.4 per cent in March and 1.3 per cent through the year,” Keenan said.
Domestic final demand was subdued this quarter, growing 0.2 per cent. The rise in imports of goods and services was offset by an increase in exports and change in inventories.
Household spending rose 0.4 per cent in the March quarter, with Keenan saying essential categories like electricity, health, rent and food drove growth again this quarter.
“We also saw increases in some discretionary categories because of overseas travel and spending on gambling, sporting and musical events,” Keenan said.
The household saving ratio fell to 0.9 per cent in the March quarter after rising last quarter.
“Household income received grew at its lowest rate since December 2021, reflecting the relatively small rises in compensation of employees and investment income received this quarter,” Keenan said.
“Compared to last quarter, the growth in income tax payable did not detract as much from total income payable by households, resulting in a lower household saving ratio.”
Meanwhile, total inventories rose $2.24 billion following a fall of $2.22 billion in the December quarter, with retail trade being the largest contributor. Retail inventories were up by just over $1 billion.