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:
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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:
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It’s been a good run for inventories.