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Andrew Hanlan, research analyst at Westpac, notes that the Australia’s Q3 Business Indicators survey for September update provided some mixed messages – which is not unusual for this survey.

Key Quotes

“Incomes were arguably robust but inventories stalled and will be a drag on growth in Q3.”

“Headline company profits increased by 1.9% in the quarter. Profits on an adjusted basis (to be more consistent with the national accounts measure) grew by 1.2% we estimate – in line with our forecast of 1.3%.”

“Over the past year, national income has been boosted by higher commodity prices – a dynamic again evident in the September quarter.”

“Employment trends were positive in the September quarter, with jobs expanding by 0.7%, including a sizeable 0.8% increase in full-time employment.”