Decline in inventories negative for Q3 GDP

The ABS has just released business indicators data for the September quarter:

Of most importance, inventories declined 1.9% over Q3 (versus expected -0.6% and +0.2% in Q2):

This came as the Delta strain shut down NSW, Victoria and the ACT.

Elsewhere, rising company profits on the back of stimulus was largely offset by falling wages & salaries.

All up, the run down in inventories should drag down Q3 GDP, which is due for release on Wednesday.

Unconventional Economist
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