Boosted by increases in real final consumption by households and government, aggregate real gross domestic expenditure rose to 5.1% in the fourth quarter of 2011, the Reserve Bank said on Monday.
“This rate of growth, the highest since the third quarter of 2010, primarily resulted from increases in real final consumption expenditure by the household sector and general government, alongside sustained firm growth in real gross fixed capital formation,” the bank said in its March Quarterly Bulletin.
This is up from a revised 4.8% in the previous three months.
The fourth quarter rate of growth is the highest since the third quarter.
Consumer spending expanded at a robust rate in the fourth quarter to 4.6 %, after increasing by 3.8% in the third quarter.
According to the central bank, the faster pace of spending was consistent with added increases in disposable income of households.
“This faster pace of spending was consistent with a further increase in disposable income of households and positive wealth effects. The sustained growth in real spending by households was evident across all expenditure categories, with spending on services in particular regaining momentum,” said the bank.
For 2011, real expenditure by households advanced by 5%.
Growth in real disposable income of households accelerated from an annualised rate of 3.9% in the third quarter of 2011 to 4.7% in the fourth quarter, reflecting improved employment levels during this period. – BuaNews
Editor’s Notes: Just why do they call it GROSS?
