Weak GDP results show urgent need for new housing investment: Craig James

The Australian economy grew by 0.4% in the December quarter, after growing by a downwardly revised 0.8% in the September quarter (originally reported as a 1% rise). 

Economists had expected growth of around 0.7% to 0.8% in the quarter.

Annual economic growth stands at 2.3%, down from the long-term average of 3% to 3.25%. 

While economic growth is sub-standard, other indicators are still encouraging. 

Consumer spending growth is close to normal; there are no wage or price pressures; and even productivity is looking perkier.

&The household saving ratio fell from 9.6% to 9.1%, in seasonally adjusted terms in the December quarter. 

In trend terms household saving fell for the third consecutive quarter, easing from 9.5% to 9.3%.

The real disappointment is housing investment – in essence, home building.

Governments of all description are sweeping the problem under the carpet, failing to address the factors holding back new investment in residential buildings.