Free Trial

Flirting With 50-Day EMA Support


Weak Data Over 50Bp ECB Hike


Clears The 20-Day EMA


Late Equity Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Repeats Story Initially Transmitted at 02:02 GMT Sep 4/22:02 EST Sep 3
--Wholesale Stock Decline Main Reason for Drop In Overall Inventories
--Company Profits Down Due Mainly to Mining Sector
     SYDNEY (MNI)- From Business Indicators data for the second quarter
published by the Australian Bureau of Statistics on Monday:
                                                  Q2                          Q1
                                        %Change, Q/Q                %Change, Q/Q
Inventories                                     -0.4    +1.1 (revised from +1.2)
MNI Median                 +0.3 (Range -0.7 to +1.2)
Company Operating Profits                       -4.5           +6.0(no revision)
MNI Median                  -4.0(Range -9.0 to +6.0)
Wages and Salaries                             +1.2%  +0.2% (revised from +0.3%)
     FACTORS: Business inventories fell unexpectedly in the second quarter due
mainly to a large 2.4% q/q drop in wholesale trade inventories, which fell for
the first time in six quarters. Retail trade inventories were flat q/q after
rising each of the previous three quarters by between 1.0% and 1.2%, while
mining inventory growth slowed sharply to a 0.3% q/q rise in Q2 from a 8.0%
increase in Q1. This was partly offset by a rise in manufacturing inventories,
which were up 0.8% q/q after falling the previous 10 quarters. 
     Company gross operating profits fell in Q2, marking the first decline in
five quarters, due  largely to an 11.5% q/q drop in mining profits, which
declined for the first time in five quarters. Profits in the rental, hiring and
real estate services fell 4.0% q/q, retail trade profits fell 0.5%, wholesale
dropped 3.1% and construction fell 1.0%. Some of these declines were offset by a
rise in manufacturing profits, but these slowed to a 1.6% q/q rise in Q2 from
3.2% in Q1. 
     Wages and salaries rose sharply in Q2, the biggest increase in at least
eight quarters, for the  second consecutive quarterly gain. Wages were driven
mainly by a 2.0% q/q rise in professional and technical services in Q2 that
followed a 0.4% rise in Q1. Electricity and related sectors saw a 2.1% jump and
manufacturing wages rose 1.4% -- the first increase in five quarters.
     TAKEAWAY: The fall in inventories means it could make a substantial
detraction from Q2 GDP and could lead to a downward revision in economists'
forecast for GDP. Currently, the median forecast of an MNI survey stands at
+0.8% q/q and +1.8% y/y. The fall in company profits was close to the MNI
forecast while the surge in wages and salaries was also in line with
expectations, though economists didn't issue a formal forecast on this. 
--MNI Sydney Bureau; tel: +61 2-9716-5467; email:

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.