Stronger than expected final quarter growth (along with an upward revision to the third quarter data) has seen the Australian economy grow by 3% in 2015. The Australian economy is now growing at about its long term average pace, and much faster than the market expectation of 2.5%.
The December quarter GDP was up 0.6% with Q3 revised to +1.1%.
As household savings fell to their lowest level since the third quarter of 2008, household consumption was the main driver for growth contributing 0.4 ppts in the quarter.
Net exports were neutral. Private capital formation deducted 0.4 ppts while Public capital formation added 0.2 ppts (the first positive contribution to growth from this sector in a year).
Queensland State Final Demand returned to the positive (albeit only +0.1%) for the quarter after five consecutive negative quarters. On an annual basis SFD contracted 1.7%; still the best result in 6 quarters.