The Australian Bureau of Statistics has released a range of economic data for the June quarter.

In summary:

  1. Our (national) economy grew a modest 0.2 per cent in the June quarter 2024 and 1.5 per cent over the 2023-24 financial year. While this was the eleventh consecutive quarter of GDP growth, it was the sixth consecutive quarter of GDP per capita falls (total GDP divided by the population of Australia). Over the year GDP per capita fell 1.0 per cent.
  2. Annual inflation increased, though annual underlying inflation continued to fall. The consumer price index rose 1.0 per cent in the June quarter and was up 3.8 per cent compared to June quarter 2023. This was the first increase in annual inflation since December quarter 2022, although annual trimmed-mean inflation continued to fall. Prices were higher for goods such as new dwellings, fuel, and fruit and vegetables.
  3. Our wages grew. The wage price index rose 0.8 per cent in the June quarter and was up 4.1 per cent compared to June quarter 2023. Private sector wages grew by 0.7 per cent in the quarter, which was the equal lowest rise for this measure in any quarter since December quarter 2021.
  4. The labour market remained tight. The unemployment rate in the month of June rose slightly compared to March to sit at 4.1 per cent. The total hours we worked was up 1.1 per cent in the quarter, but was below the growth seen in June quarter 2023.
  5. We spent less. Household spending fell 0.2 per cent in the quarter, following a quarterly rise of 0.6 per cent in the March quarter. We spent less on discretionary items, particularly for events and travel. Spending on food also fell 1.0 per cent as we looked to reduce our grocery bills.
  6. Our savings remained low. Households saved only 0.9 per cent of their income over the year. This was the lowest rate of annual saving since 2006-07. Net savings reduce when household income grows slower than household spending.
  7. Government spent more on frontline services. Commonwealth government spending added 0.2 percentage points to economic growth in the June quarter. This was driven by more spending on government benefits for households, particularly as large government programs continued to expand for health services.
  8. Trade contributed to growth. Exports rose 0.5 per cent in the June quarter while imports fell 0.2 per cent. Services led the growth in exports, driven by travel service exports, which bounced back 9.9 per cent. Falls in bulk commodity prices and higher income paid to non-residents resulted in the largest current account deficit since June quarter 2018
  9. Capital investment dipped again. Total capital investment fell 0.1 per cent in the June quarter. Business investment in new machinery and equipment fell 1.6 per cent, driven by the agriculture and retail industries. Businesses expectations indicate that their capital investment will rise moderately next financial year.

The full suite of information releases is available here.

There were varying responses to the new data from Tasmania’s political players.

Treasurer Michael Ferguson said that State Final Demand data “has again proven the resilience of the Tasmanian economy.”

Tasmania’s State Final Demand grew 1.8 per cent compared to the June 2023 Quarter, the second highest growth of all states and above the national average.

Tasmania’s growth from the March 2024 quarter to the June quarter of 0.6 per cent was also  above the national average of 0.2 per cent.

These latest figures come on the back of data released last week showing that Tasmanian businesses invested a record high of $586 million for the June 2024 quarter.

“Families are continuing to spend and businesses are confident to invest despite contending with the national economic headwinds caused by higher interest rates and strong inflation,” the Treasurer said.

The Treasurer was however contradicted by the data which shows that household consumption expenditure actually fell.

Labor noted that the building approvals data shows dwelling approvals have slumped.

191 total dwelling units were approved for the month of July. Approvals have remained below 200 for the entirety of 2024, trending downwards for the last two years and are even below 2017 levels. Dwelling unit approvals are approximately 10% lower than they were a decade ago.

Leader of Opposition Business in the House of Assembly Shane Broad said it highlights “the consequences of the Liberals’ failure to deliver on their promises.”

“Jeremy Rockliff and the Liberals promised to deliver a single statewide planning scheme a decade ago that would make approvals “fairer, faster, cheaper, simpler,” he stated.

“Instead, it is more difficult, more time consuming and more expensive – which has stopped Tasmania from building more houses, sooner.

“This data is more evidence that Jeremy Rockliff’s minority government has not delivered for Tasmanians and won’t help young people access affordable rentals, get a foot in the door of home ownership, or support jobs in the building and construction industry.”

Greens Leader Rosalie Woodruff observed that spending is still shrinking and economic growth is now at its lowest since the 1991-2 recession, excluding the pandemic.

“Instead of investing in a billion-dollar stadium, the Liberal Government should prioritise the needs of the Tasmanians who are really struggling in their Budget,” she said.

“Tasmanians are fighting to keep a roof over their head, as the price of essentials like groceries, power and housing keeps rising. Rights for renters, as well as free education and transport, will go a long way to helping Tasmanians in need.”

Woodruff claimed Tasmania has under-regulated Airbnb; along with some of the weakest protections for tenants in the country, this is costing renters.

“The Liberal Government can stop unreasonable rent increases, introduce minimum standards for appliances in rental properties to bring down power bills, and regulate Airbnb to free up housing.”

Woodruff urged the Liberal Government to make public schools and TasTAFE free by abolishing school levies in the State Budget.

She also urged higher spending on public transport.

“The upcoming budget will show the Liberal’s priorities in black and white,” said Woodruff. “The Greens sincerely hope they choose to put the interests of struggling Tasmanians ahead of unnecessary spends like a stadium.”