Australia - Faida Corporate

Corporate profits in Australia rose by 4.5 percent on quarter to a new all-time high of AUD 98.03 billion in the second quarter of 2019, following an upwardly revised 2.6 percent gain in the previous period and beating market consensus of 2 percent growth. That was the strongest increase in corporate profits since the first quarter of 2018. By industry, profits grew for mining (10.9% vs 6.6% in Q1); wholesale trade (3% vs 2%); construction (4.1% vs -7.2%); accommodation & food (5.6% vs -3.9%); retail trade (3.4% vs 1.2%); rental, hiring and real estate (5.1% vs -10.2%); arts and recreation (11.5% vs -10.4%); administrative and support services (2.7% vs 12.4%); professional, scientific and technical services (6.5% vs 8%); and other services (1.9% vs 1%). By contrast, profits fell for manufacturing (-3.5% vs -1%); financial and insurance (-5% vs 13.6%); information media and telecommunications (-4.7% vs 5.5%); utilities (-11.3% vs 0.6%); and transport, postal, warehousing (-2% vs 4.1%).

Corporate profits in Australia rose by 1.7 percent to a new all-time high of AUD 93.03 billion in the first quarter of 2019, after an upwardly revised 2.8 percent gain in the prior quarter but missing market consensus of a 3 percent growth. It was the weakest rise in corporate profits in three quarters. By industry, profit growth slowed for mining (5.2 percent vs 6 percent in Q4); electricity, gas, water & waste services (1.8 pct vs 6 pct); and transport, postal, warehousing (3.8 pct vs 10.5 pct). In addition, profits fell for construction (-7.5 pct vs 5.1 pct) and accommodation & food services (-3.8 pct vs 10.6 pct). Also, profit declined further for rental, hiring and real estate (-10 pct vs -0.2 pct). Meantime, profits of wholesale trade (2.8 pct vs -1.4) and those of administrative and support services rebounded (13.6 pct vs -11.3 pct), while those of other services were flat (vs 1.8 pct in Q4).

Corporate profits in Australia rose 0.8 percent to an all-time high of AUD 90.06 billion in the fourth quarter of 2018, the smallest increase since Q3 2017 and below market consensus of 3 percent growth. By industry, profit growth slowed sharply for: electricity, gas, water & waste services (3.7 pct vs 8.2 pct in Q3); construction (1.6 pct vs 10.4 pct); and accommodation & food services (10 pct vs 16.3 pct). In addition, profits fell for: manufacturing (-3.6 pct vs -4.5 pct); wholesale trade (-3.4 pct vs -5.3 pct); retail trade (-0.8 pct vs -4.3 pct); information media & telecommunications (-7.8 pct vs 1 pct); financial & insurance services (-26.6 pct vs -1.9 pct); rental, hiring & real estate (-1.3 pct vs -0.2 pct); administrative & support services (-13.7 pct vs 2.7 pct); and arts & recreation services (-5.2 pct vs 10.2 pct).