ABS data shows Queensland economy transitioning well

Today’s Australian Bureau of Statistics data shows that Queensland’s State Final Demand is growing - increasing by 0.4 per cent in trend terms in the September quarter 2016 – despite the decrease in investment in construction seen at the height of the resources boom.

Treasurer Curtis Pitt said the September quarter has helped Queensland’s State final demand rise by 1.2 per cent over the past year.

"When compared with other States, Queensland’s 0.4 per cent State Final Demand (SFD) improvement in the September quarter is ahead of Tasmania and Western Australia and equal with Victoria and South Australia," Mr Pitt said.

"Queensland is continuing to transition to a post-mining boom economy and some sectors and regions were making that change easier than others but I’ve always maintained that one of the great strengths of the Queensland economy is its diversity.

“Importantly, as our state’s economy continues to transition, our economic plan will continue to deliver for Queensland – and for Queenslanders.”

Mr Pitt said a 0.6 per cent increase in household consumption drove the solid outcome in SFD in the September quarter, with household consumption also increasing 2.1 per cent over the year.  

The main contributors to this rise in household consumption were insurance and other financial services (up 1.4 per cent), rent and other dwelling services (up 0.5 per cent) and health (up 1.4 per cent).

Dwelling investment grew by 1.6 per cent in September quarter 2016, driven entirely by the construction of new dwellings (up 2.5 per cent).

“Dwelling investment was 9.3 per cent higher over the year, driven by strong growth in construction work done on medium‑to‑high density dwellings,” Mr Pitt said.

“A strong pipeline of housing work yet‑to‑be‑done suggests ongoing strength in Queensland dwelling investment in 2016-17, particularly for units and apartments in Brisbane.”

Business investment rose slightly, up 0.3 per cent in September quarter 2016, following a decline of 1.6 per cent in the previous quarter.

“With the construction of the three LNG projects now completed (and the production phase ramping up), business investment is expected to return to a more sustainable longer term growth,” Mr Pitt said. 

Highlights from business investment were that new engineering construction rose 1.9 per cent in the September quarter, and machinery and equipment investment rose 2.3 per cent in the same period.

Public final demand fell 0.3 per cent in September quarter 2016, but was 3.6 per cent higher over the year.

Mr Pitt said the Government’s Advance Queensland strategy was focused on developing new industries, building on our traditional strengths and creating new jobs for the future.

“The key focus is to attract investment through an aggressive campaign to lure interstate and overseas businesses to locate here while giving existing Queensland businesses incentives to grow and hire,” he said.

“The Government is also building the infrastructure our state needs. We’ve committed $40 billion in infrastructure over the next four years, with $10.7 billion earmarked for 2016-17 supporting an estimated 31,000 jobs.

“Almost half the 2016-17 infrastructure spending ($4.9 billion) is targeted towards regional Queensland.

“This focus on the regions is a deliberate approach as some areas of the State are travelling at different speeds and need additional support from the Government.”

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