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Economic growth remains just above the waterline, says Master Builders Australia, following the Australian Bureau of Statistics’ release of new National Accounts data for the September 2024 quarter.
Master Builders’ Chief Economist Shane Garrett has said that Australia’s economy expanded by +0.3 per cent during the September 2024 quarter, a slight acceleration on previous quarters, however, the new data represents a weak pace of growth, just 0.8 per cent bigger when compared to a year ago.
The building and construction industry remains one of the stronger performers with construction output rising by 0.9 per cent during the quarter.
Government spending continues to be a vital source of demand in the economy right now driven by public support for infrastructure projects that was crucial in boosting overall construction activity during the quarter.
However, Mr Garrett warns there are two red flags in today’s data. Firstly, this quarter saw the second consecutive decline in productivity across the economy, dipping by 0.5 per cent. Secondly, though Gross Domestic Product (GDP) was slightly up, the overall effect of a large expansion of the population meant a 0.3 per cent fall in economic output per capita, which is down for the seventh consecutive quarter.
Earlier today Master Builders released new research which found cost of living has worsened with 2 in 3 Australians saying it’s their biggest issue.
The research also found that 1 in 3 Australians are going without essentials like food and healthcare to pay for housing.
Quotes attributable to Shane Garrett, Master Builders Australia Chief Economist:
“Today’s data shows that, put simply, average living standards dropped again during the September 2024 quarter.
“Australia’s economic growth is just holding its head above water.
“The only way to deliver permanent improvements in living standards is through sustained productivity improvements and turbocharging the private sector.”
Quotes attributable to Denita Wawn, Master Builders Australia Chief Executive:
“Private investment in building and construction is nowhere near the levels it should be if we are to solve the housing crisis.
“We have to get the conditions right to increase productivity and reduce business costs across the economy, particularly in the building and construction industry, where we know that a strong industry means a strong economy.
“It is vital we get these settings right so we can deliver the housing supply and cost-of-living relief that Australians desperately need.”
Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au