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.
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