Australia's Household Wealth Rises 3.1% in September Quarter, ASB Data Shows

MT Newswires Live12-18 10:08

Australia's total household wealth rose by 3.1%, or AU$551.3 billion, to AU$18.4 trillion in the September quarter, according to figures released by the Australian Bureau of Statistics (ABS).

The value of residential land and dwellings rose 2.7%, or AU$303.7 billion, contributing 1.7 percentage points to the growth in household wealth, making it the main driver of household wealth growth.

Superannuation assets rose 3.7%, or AU$160.2 billion, contributing 0.9 percentage points to household wealth growth.

"Global and domestic share markets performed strongly for the second consecutive quarter, increasing household superannuation balances," said Mish Tan, ABS head of finance statistics.

Total demand for credit was AU$155.6 billion, a rise of AU$55.2 billion from the previous quarter, driven by general government contribution of AU$63.4 billion and private non-financial businesses' contribution of AU$55.1 billion, while the Commonwealth government raised AU$45.3 billion through treasury bond issuance.

Private non-financial businesses' demand for credit was driven by debt funding of AU$25.6 billion and equity raising of AU$29.5 billion.

"Household demand for credit was AU$30.1 billion this quarter. Growth in loan balances was partly offset by the Government's reductions in student debt by 20%." Tan added.

Meanwhile, national investment decreased by AU$7 billion to AU$171.9 billion in the September quarter.

The data showed that Australia was a net borrower of AU$31.2 billion from the rest of the world.

Also, Australian households' AU$67.5 billion net lending position was due to a AU$97.6 billion acquisition of financial assets, partly offset by AU$30.1 billion incurrence of liabilities.

Meanwhile, the general government's AU$54.4 billion net borrowing position was due to a AU$69.2 billion incurrence of liabilities, partly offset by a AU$14.8 billion acquisition of financial assets.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment