No. 3 - Department of Treasury - The Western Australian Government

2006 No.3 Western Australian Economic Summary12%Figure 26TOTAL BUSINESS WAGES AND SALARIESCurrent Prices, Moving Annual Average Growth Rates8%4%0%Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06Western Australia AustraliaSource: ABS Cat. 5676.0Business InvestmentBusiness investment in Western Australia dropped by 13.7% in theSeptember quarter 2006 compared to its June quarter peak, but wasnonetheless 35.7% higher than its level a year previously (Figure 27).This investment has mainly been driven by large resource-relatedinvestments begun in response to strong demand and prices for keycommodities overseas, particularly China (see the Global Markets chapter).Western Australia accounted for 23.4% of capital expenditure 1 in Australiaduring the 12 months to September 2006 2 . Capital expenditure inWestern Australia has grown rapidly in the past few years, and in the fourquarters to September 2006 in particular. This growth has been drivenprimarily by the mining industry (Figure 27).1 The ABS capital expenditure series is a separate measure from the businessinvestment series that is used in the State accounts. Capital expenditure makes upapproximately two thirds of total business investment. Capital expenditure is usefulas it provides a breakdown by industry, which the business investment series doesnot provide.2 ABS, Catalogue Number 5625.0Department of Treasury and Finance 41