GDP up but productivity weak
The national accounts to the end of December show that gross domestic product rose a healthy 3.9 per cent last year, although productivity did not improve. Productivity is measured by calculating how much is produced by each worker every hour and fell in the December quarter. Consumption rose twice as quickly as production during the quarter with big increases in discretionary consumer spending. Over the year spending on motor vehicles was up 12.1 per cent, spending on clothes increased 8.2 per cent and recreation spending rose by 7.5 per cent, but rents were only up 3.1 per cent. Household incomes were up by 7.7 per cent for the year and wages grew by 4.6 per cent.
Source: The Australian