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Queensland Economic Advocacy Solutions

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Queensland's Domestic Economy - June Quarter 2018 Update

The best measure of the economic activity that each of us sees and feels on a daily basis is state final demand which measures domestic economic activity. Today the Australian Bureau of Statistics released their latest estimates and Queensland's year to the June Quarter 2018 was a very healthy 3.4% on a seasonally adjusted basis - line ball with the National average (3.4%).

However the June quarter 2018 itself for Queensland was somewhat of a shocker with it only growing by 0.1% seasonally adjusted (the lowest of all states). This was as a result of a shutdown in Government consumption and capital spending during the quarter. We will need to keep an eye on this as the correlation between employment growth and SFD growth is quite strong and it indicates that job creation in the immediate months ahead may be softer than what we have seen.

Finally the elephant in the room that has to be addressed is that our economy continues to be out of alignment at present. Queensland is quite simple not investing enough with our current capital spend as a percentage of the economy at 24.4% vs our long term 25 year ave of 26.9%. Quite simply we are drawing down on our wealth & stealing from future generations. Queenslanders would have to go back to nearly last century to see us at this extent of underspend.

 

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