Every quarter I like to look at the changes in Australian GDP and which categories are responsible for the growth / decline. Each bubble represents a category of GDP proportionate to its size, colours represent the growth rate.

Click the charts for a large version and commentary:

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This quarter the key takeaways include:

  • Federal Government spending (+11% for non-defence, 7% for defence over the year) the only thing keeping GDP above zero.
  • Investment growth was not good, but I was expecting worse. Possibly there are green shoots, but capex surveys and investment forward indicators suggest there is still more downside.
  • State & Local government spending has turned negative – with a low number of property transactions this is likely to remain a feature

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