Company profits fell 1.3% in September quarter - ABS

The news: Australian companies' gross operating profits fell 1.3% in the September quarter, according to Australian Bureau of Statistics data, undershooting expectations of a 1.2% uptick.

The numbers: Wages and salaries rose 2.7% and inventories increased 1.2% across the private sector. Mining recorded the biggest downswing, with gross operating profits falling 7.7% as wages and salaries rose 4.4% and inventories increased by 8.9%. The biggest increases in gross profits across the quarter were in accommodation and food services (+11.6%), retail (+8.7%), arts and recreation services (+8.7%) and construction (+8.5%).

The context: Despite missing expectations, the figures were an improvement on the second quarter, when gross profits fell 13.1%. A significant number of business are still facing difficulties finding the right staff, higher operating costs and supply chain issues, according to the ABS.