The Australian economy grew by 0.8% in the March quarter and by 3.3% last year, according to official ABS GDP data.
Key points:
- GDP grew more than economists expected, and the economy grew by 3.3% last year.
- Employee compensation rose 5.5% last year, but business profits rose 21.6%
- The largest increase in imports since December 2009 was the largest friction for the economy
Economists typically expected quarterly growth of 0.5% and 2.9% for the year as of March 31st.
The main contributors to the better-than-expected result were:
- an increase in stocks as companies replenish after supply chain disruptions (+1 percentage point)
- household consumption (+0.8 percentage point)
- public spending (+0.6 percentage point).
However, ABS figures show that a drop in household savings and an increase in income have contributed to the increase in spending, which was mainly directed at transport services (+ 60%). , leisure and culture (+ 4.8%) and hotels. , cafes and restaurants (+ 5.3%) as COVID-19 restrictions eased.
Mining profits rose during the first quarter as most commodity prices rose. (ABC News: Hugh Sando)
The biggest slowdown in the economy was an increase in imports, which was down 1.7 percentage points of GDP, as some supply bottlenecks related to COVID-19 eased and companies were repopulated. .
ABS noted that the first three months of this year saw the biggest jump in imports since the December 2009 quarter.
Wage growth follows an increase in profits
ABS saw a 1.8% increase in employee pay during the quarter, although hours worked fell 0.9% mainly due to Omicron-related absences.
However, the salary increase was accompanied by a 1.9% increase in the number of people employed, which means that the salary increase was distributed among more workers.
ABS also recorded a 1.7% increase in labor productivity during the quarter, as workers maintained production despite staff absences, leading to a sharp increase in labor productivity of 2%. , 8% last year.
This led to an annual fall of 2.7% in the so-called real unit labor costs, a measure of the cost of wages as part of the production produced.
No wonder then that the so-called gross operating surplus (essentially profits) of non-financial firms rose 7.3 percent during the quarter, led by mining (due to large increases in LNG raw materials, coal and iron ore) and wholesale trade (with improved grain, oil and car profit margins).
However, the ABS noted a drop in manufacturers’ profits, largely driven by rising input costs, as well as falling construction, hospitality and other services as subsidies fell. government.
Over the past year, employee pay has risen 5.5%, and much of the increase reflects a higher number of people employed, rather than wage increases.
During the same period, the gross operating surplus of non-financial companies increased by 21.6%.
Posted 1 hour, 1 hour ago on Wednesday, June 1, 2022 at 1:35 AM, updated 1 m ago, 1 minute ago, Wednesday, June 1, 2022 at 2:36 AM