Company profits dropped in Q1, wages and salaries rose: ABS
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The news: Company gross operating profits dropped in the March quarter, while wages and salaries rose, according to new estimates from the Australian Bureau of Statistics (ABS).
The numbers: Seasonally adjusted estimates of private sector sales, wages, profits and inventories found that company gross operating profits in the March quarter fell 2.5% quarter on quarter, and 8.6% year on year.
Sales of goods and services in manufacturing fell 1% quarter on quarter and 2.5% year on year, while wholesale trade sales dropped 0.9% compared to the December quarter, or 6.1% compared to the March 2023 quarter.
Inventories gained 1.3% quarter on quarter, but lowered 0.6% year on year. Wages and salaries were up 0.6% quarter on quarter, and 6.6% compared to the prior year period.
The context: Financial and insurance services (-7.4%) and mining (-6.1%) saw the biggest declines in gross operating profits, while arts and recreation services experienced the largest rise (9.2%).
Meanwhile, financial and insurance serviced had the greatest wages and salaries increase, gaining an estimated 2.7% in the quarter.
The source: ABS release
