Australian Economy

Crashing inventories sets up whopping GDP loss

David Llewellyn-Smith
Monday, 31 August 2020
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Via the ABS:

June Key Figures

Mar Qtr 20 to Jun Qtr 20
Jun Qtr 19 to Jun Qtr 20
%
%
Sales of goods and services (Chain volume measures)
Manufacturing
Trend
na
na
Seasonally Adjusted
-8.6
-5.5
Wholesale trade
Trend
na
na
Seasonally Adjusted
-6.7
-5.3
Inventories (Chain volume measures)
Trend
na
na
Seasonally Adjusted
-3.0
-4.7
Company gross operating profits
Trend
na
na
Seasonally Adjusted
15.0
11.3
Wages and salaries
Seasonally Adjusted
-3.3
-1.1
na not available, trend estimates have been suspended due to the impacts of COVID-19

Big inventories hit worth probably 6 or 7 basis points of GDP alone. Company profits numberwang. Or is that Jobkeeperwang?

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.