Company Profits - Businesses Buoyant

Good afternoon,

 

• Gross company operating profits rose by 2.0% in the June quarter, following growth of 6.5% in the March quarter. The strength in profit growth corresponds with elevated business conditions.

 

• A jump in mining profits provided the largest contribution to the aggregate growth in gross operating profits, contributing 80% of the total increase for the quarter. Mining profits rose 4.4% in the June quarter, following a 12.2% increase in the previous quarter. Profit growth in non-mining sectors was more subdued, lifting by 0.6% in the June quarter.

 

• Wages & salaries rose 1.2% in the June quarter and 4.5% over the year. 

 

• Inventories rose 0.6% in the June quarter. This followed an increase of 0.8% in the March quarter. Inventories are likely to detract slightly from GDP growth in the June quarter. 

 

• We remain comfortable with our forecast for a GDP increase of 0.8% in the June quarter and 2.9% 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.

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