The Australian government’s $42 billion stimulus package has ensured that the country has avoided a recession. The economy grew by .4% in the March quarter, making Australia the only country of the developed economies to not have been in recession.
In the June quarter, household spending increased by $1.8 billion. Treasury estimates that there would have been a reduction if not for the $900 cash payments. Government payments to households totalled $7.4 billion in the June quarter.
Business spending on plant and equipment in the quarter increased by $1.3 billion, which was mostly for the purchase of company cars to take advantage of the investment allowance involved in the stimulus package.
The estimate of the effect of the stimulus package is that the economy would have contracted by 1.3% in the last year if it had not been applied.
Investment in new dwellings and renovations dropped 11.1% since last September and commercial construction also reduced by 8.8% in the quarter.
In the quarter, large and small businesses had 6.2% lower profits, wage and salary incomes were 1.6% lower and tax revenue fell.
Treasury estimates that the stimulus package has saved 150,000 jobs up to June, mostly in the retail field, which switched from laying of 12,500 people each quarter to hiring 8,000 people a quarter.
So while the economic injection has kept people in work, the underlying economy is still weak and will take time to recover.
Small business has largely retained employees and will benefit from an improvement in business conditions. Many European countries and Japan are now out of recession, but the US economy is still flat.
Australian small business is the primary source of employment and we assist them with our online local search facility which provides qualified prospects for them from our business directory portal, at no cost to them.
Monte Huebsch, CEO
In the June quarter, household spending increased by $1.8 billion. Treasury estimates that there would have been a reduction if not for the $900 cash payments. Government payments to households totalled $7.4 billion in the June quarter.
Business spending on plant and equipment in the quarter increased by $1.3 billion, which was mostly for the purchase of company cars to take advantage of the investment allowance involved in the stimulus package.
The estimate of the effect of the stimulus package is that the economy would have contracted by 1.3% in the last year if it had not been applied.
Investment in new dwellings and renovations dropped 11.1% since last September and commercial construction also reduced by 8.8% in the quarter.
In the quarter, large and small businesses had 6.2% lower profits, wage and salary incomes were 1.6% lower and tax revenue fell.
Treasury estimates that the stimulus package has saved 150,000 jobs up to June, mostly in the retail field, which switched from laying of 12,500 people each quarter to hiring 8,000 people a quarter.
So while the economic injection has kept people in work, the underlying economy is still weak and will take time to recover.
Small business has largely retained employees and will benefit from an improvement in business conditions. Many European countries and Japan are now out of recession, but the US economy is still flat.
Australian small business is the primary source of employment and we assist them with our online local search facility which provides qualified prospects for them from our business directory portal, at no cost to them.
Monte Huebsch, CEO
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