Company Profits - Good Times for Businesses

• Gross company operating profits jumped 5.9% in the March quarter, the strongest quarterly increase in over a year. The strength in profit growth corresponds with elevated business conditions and is indicative of how the business sector has become one of the key positives for the Australian economy.
• A 10.9% surge in mining profits drove overall profit growth higher in the quarter. A recovery in exports in the March quarter, after shipments were hampered previously, and a surge in commodity prices, helped miners.  Non-mining sectors also performed well, with profits growing 3.4% in the quarter.
• Wages & salaries rose a moderate 0.8% in the March quarter, but it was the softest quarterly increase in a year.
• Inventories rose 0.7% in the March quarter, and are likely to make a small contribution to GDP growth in the March quarter.
• Strong company profits and the larger-than-expected contribution to economic growth from inventories suggest upside risk to our GDP forecast of 0.9% growth in the March quarter, and 2.8% in the year. We will receive government spending and net exports tomorrow, before finalising our GDP forecast for Wednesday.

 

Please see the attached report for more information.

Download.pdf Back to News