Australia: Q1 company profits rose 6.0%/q while inventories surprised to the upside at 1.2% - TDS

The research team at TDS points out that Australian Q1 company profits rose +6.0%/q (mkt 5.0%) while Q1 Inventories surprised to the upside at +1.2% (mkt: +0.5%) with all sectors posting a rise in inventories except manufacturing.

Key Quotes

“Inventories were expected to add 0.1% pts to GDP, but after today’s print, it suggests the contribution could be closer to +0.3% to 0.4% pts. This implies mild upside to the +0.4% Q1 GDP survey taken last week. We will finalise our Q1 GDP forecast after Net exports and government spending are released tomorrow.”

“The Melbourne Institute Monthly inflation gauge for May remained unchanged at 0%/m, see headline inflation rise +2.8%/yr. The trimmed mean measure increased +2.1%/yr rising from 1.7%/yr in April.”