Business Indicators set up GDP shocker
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Break out the red pens, from the ABS comes Business Indicators for the December quarter with key inputs into GDP Wednesday:
DECEMBER KEY FIGURES
 | | |
Sep Qtr 15 to Dec Qtr 15 |
Dec Qtr 14 to Dec Qtr 15 |
| | |
% |
% |
|
| ||||
| Sales of goods and services (Chain volume measures) | | | ||
| Manufacturing | | | |
| | Trend |
-1.1 |
-7.9 |
| | Seasonally Adjusted |
-2.0 |
-8.4 |
| Wholesale trade | | | |
| | Trend |
0.5 |
1.9 |
| | Seasonally Adjusted |
1.6 |
3.0 |
| Inventories (Chain volume measures) | | | ||
| Trend |
-0.1 |
0.0 | |
| Seasonally Adjusted |
-0.4 |
0.2 | |
| Company gross operating profits | | | ||
| Trend |
-0.6 |
-0.8 | |
| Seasonally Adjusted |
-2.8 |
-2.3 | |
| Wages and salaries | | | ||
| Seasonally Adjusted |
0.5 |
2.8 | |
|
| ||||
Inventories, profits and wages all missed expectations. With a weak contribution from net exports, falling business investment, flat consumption and falling inventories, it will over to public spending to save the print.
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At this point we’re flirting with a negative number.
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.
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