Wainwright Marks Management – More Bad News for Australian Economy
June 07, 2019 (PRLEAP.COM) Business NewsAnalysts at Wainwright Marks Management say reports that Australia's recent workplace productivity decline is more bad news for the struggling economy.
Since the end of its mining investment boom, Australia's economy has produced disappointing figures. The latest data from the Productivity Commission revealed that Australia's labor productivity rate had declined to 0.4%, significantly less than the 2.2% average for the last five decades.
Wainwright Marks Management analysts say the significant decrease in investment in capital can be partly blamed for the productivity decline, which is a worrying sign for the economy.
In the first quarter of this year, Australia's economy expanded by only 1.8%. Wainwright Marks Management analysts say this was the weakest growth seen in almost a decade since the end of the financial crisis.
As the Australian economy continues to sputter along, growing below the long term average of 3.5%, the main driver of growth in the first quarter came from robust government demand. Government consumption made up 0.2% of quarterly GDP which was the same as the contribution from international trade.
Negatively impacting economic growth was weak household consumption which is traditionally the largest portion of Australia's economy.
Wainwright Marks Management analysts say the weak household consumption is due to slow wage growth and a decline in housing prices in many parts of the country.
Falling property prices have been reflected in lower spending on goods such as furniture and household equipment as well as on recreational expenses like hotels and restaurants.