Company profits rise 6.9pc in second quarter

Gross operating profits rose 6.9pc in the second quarter, but were unchanged from a year earlier.

Australian company gross operating profits rose 6.9 per cent in the second quarter from the prior quarter, the Australian Bureau of Statistics said.

Company profits were unchanged on the corresponding quarter a year earlier.

The value of inventories, or stocks, held by Australian companies rose 0.3 per cent in the second quarter from the prior quarter, the ABS said.

Both profits and inventories are key inputs into quarterly growth data, which will be published on Wednesday. Economists expect the economy to expand at a solid pace of 3.2 per cent in the quarter from a year earlier.

The economy continues to transition toward services-led growth, supported by a lower Australian dollar and record low interest rates. Rising exports of iron ore and natural gas are also supporting activity.

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