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Australia Q3 inventories to drag on GDP, company profits rise -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: The Sydney Tower Eye observation deck, Sydney, Australia. This view shows the Central Business District. REUTERS/Loren Elliott

SYDNEY – Australian businesses saw inventories drop more than they expected during the third quarter, which could be a drag on economic growth. But profits rose partly due to government subsidies in light of coronavirus lockdowns.

The Australian Bureau of Statistics released Monday figures showing that inventories dropped 1.9% during the third quarter. Analysts had predicted a flat result. This may have meant that gross domestic product fell by 0.6 percentage point, which is already a result of lockdowns.

The company’s gross operating profit rose by 4.0% during the quarter. However, the wage bill decreased 0.8% as a result of stay-at home orders in Sydney and Melbourne.

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