Australia business profits plummet
Australia business profits plummet | Insurance Business Australia
Insurance News
Australia business profits plummet
Report includes estimates of salaries and more
Insurance News
By
Roxanne Libatique
Company gross operating profits in Australia dropped by 13.1% in the three months to June 30, 2023 (Q2 2023), according to the Australian Bureau of Statistics’ (ABS) latest data.
The report included quarterly estimates of private sector sales of goods and services, wages and salaries, company profits, and the book value of inventories in several industries in Australia. The series was compiled from data collected by the ABS in its Quarterly Business Indicators Survey.
Valuation changes have had an impact on the value of Australian businesses’ inventories this quarter.
The ABS applied an Inventories Valuation Adjustment (IVA) in the calculation of the gross operating surplus of private non-financial corporations (GOS) estimate in the Australian national accounts. The IVA for the June quarter 2023 was -$857 million, which is $2,242 million lower than the March quarter 2023 IVA of $1,385 million.
Latest figures
The data revealed that wages and salaries in Q2 2023 rose by 1.8%, while inventories dropped by 1.9%.
In the financial and insurance services sector, company gross operating profits jumped by 15.7% during the same period, while wages and salaries rose by 2.7%. Meanwhile, sales of goods and services dropped by 1.8%.
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