Mining leads gross profits down in June quarter: ABS

The news: Australian companies' gross profits fell significantly in the June quarter and are down more the 10% on the same quarter last year, ABS figures show.

The numbers: Australian company gross operating profits were down 13.1%, seasonally adjusted in the quarter to June, and down 11.8% compared to the same quarter a year ago. Mining profits were hardest hit, falling 21.3% on the March quarter. Manufacturing sales were down 2%, while wholesale trade lost 3.4%. Wages and salaries rose 1.8% in the June quarter, and were up 9.9% on the same quarter last year. Inventories fell by 1.9%.

The context: Gross mining profits have been rolling over since peaking in mid 2022 after a sustained uptrend that began in the 2020 September quarter, when oil, gas and coal prices surged during the early months of the COVID-19 pandemic. Seasonally adjusted gross profit figures for the mining sector more than doubled in the two years to the June quarter 2022.