WA’s economy dips as mining activity falls

The size of WA’s domestic economy contracted over the March quarter, falling by 1.0%. 

Despite this decline, growth across the year remains solid at 4.1% and WA is still the strongest of all states and territories. 

The quarterly decline was primarily driven by a reduction in business investment, which fell 6.8% on the back of a decline in activity in the mining sector. Dwelling investment also detracted from growth, falling 3.3% over the quarter as renovation activity weakened.  

On the flipside, supporting economic activity this quarter was an increase in consumption from both households and the government. Household consumption rose 0.5% over the quarter, aided by strong population growth, while government consumption rose 1.3% as spending on benefits to households strengthened.   

Net exports drop amid wet weather woes

Seasonal wet weather in the State’s North hindered WA’s exports over the March quarter, falling 2.3% to be down 1.7% over the year. At the same time, imports declined only slightly, edging down 0.1% over the quarter. A fall in goods imports, in line with the slump in business investment, offset the increase in services imports as households continue to increase their international travel.  

As a result, net exports fell 3.1% over the quarter, bringing the annual decline to 4.1%.  

Housing approvals continue to climb 

In a sign that dwelling supply should start to pick up over the year, the number of new housing approvals in WA continues to climb, rising 4.7% over April. 

This has seen the number of housing approvals surge 44.9% since this time last year despite the increased cost of borrowing, as demand for housing remains tight.  

CCIWA’s Economic reports are available exclusively to CCIWA Complete, Advantage and Corporate Members. For more see CCIWA’s Economic Insight page.   

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