Today, the Australian Bureau of Statistics released the – December-quarter 2015 National Accounts data – which showed that real GDP grew by 0.6 per cent in the three months to December 2015 (down from 1.1 per cent in the September-quarter. It was largely driven by Private household consumption (albeit declining) and public consumption and capital formation. Private consumption growth remained positive and contributed to growth, but it is being funded by a declining saving ratio and rising indebtedness. This was in the context of declining real wages growth and declining real net national disposable income overall and per capita. These trends are unsustainable. The government sector was responsible for 50 per cent of the total growth in the December-quarter. Without the public sector spending contribution, annualised growth would be at 1.2 per cent relative to pre-GFC trend rates of between 3 and 3.25 per cent. The negative growth in private investment means that potential output in Australia and future growth rates will be lower than otherwise. Again, not a positive sign. The other notable result was the increasing evidence that Australia continues to be in an income recession. Real net national disposable income fell by a further 0.1 per cent over the quarter and 1.1 per cent over the last year. The data continues to confirm that Australia faces a very uncertain outlook and with the annual fiscal statement coming up – now is not the time to be cutting net public spending.