ABS business indicators mixed

The ABS Business Indicators series for the June quarter is out and is mixed. The key dimensions of the release are company profits and inventories which are a part of GDP calculus. Company profits came in with a big ouch:

Here’s the chart, showing we remain well below long run growth trends:

Consensus was for 1% on the quarter, instead we got -0.7%. And look at the mess that is year on year.

On to inventories:

Consensus was for 0.2% so the 0.6 over achieved and may be some small upside risk to consensus GDP forecasts. Here’s the chart:

It’s been a good run for inventories.

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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.