Australian Inventories Rise More Than Expected

Australia’s business inventories fell 0.9% quarter-on-quarter in Q3 2025, reversing a 0.1% rise in the previous period and marking the first decline since Q3 2024. Stocks dropped notably at miners (-4.8% vs 4.2% in Q2), retailers (-1.6% vs -0.8%), and the accommodation and food services sector (-1.3% vs 0.5%). Meanwhile, inventory growth at electricity providers moderated sharply (1.6% vs 7.3%). Wholesaler stocks were flat after a 1.3% decline in Q2, and manufacturers saw a modest acceleration (0.4% vs 0.2%). On an annual basis, business inventories rose just 0.2%, the slowest increase in six quarters and down from 0.7% in Q2.

Australia’s business inventories rose by 0.1% quarter-on-quarter in Q2 2025, a sharp slowdown from the upwardly revised 1.2% growth recorded in the previous quarter. This marked the weakest expansion since the contraction in Q3 2024, primarily driven by easing inventory growth among manufacturers (0.2% vs 1.7% in Q1) and miners (4.8% vs 5.0%). Moreover, inventories slipped for wholesalers (-1.7% vs 0.2%) and continued to fall for retailers (-0.5% vs -0.3%). In contrast, inventory levels accelerated for electricity providers (6.9% vs 4.8%) and rebounded for the accommodation and food services sector (0.6% vs -0.5%). On an annual basis, business inventories increased by 0.8% compared to the same quarter last year.

Australia’s business inventories rose 0.8% quarter-on-quarter in Q1 2025, exceeding both market expectations and the previous quarter’s 0.2% increase. This marks the strongest increase since Q1 2024, driven by a sharp rise in inventories for miners (3.5% vs 0.8% in Q4) and electricity providers (4.2% vs 2.6%). Inventories also rebounded in manufacturing (0.8% vs -0.5%), while they declined for accommodation and food services (-0.8% vs 1.1%) and retailers (-0.4% vs 0.5%). Inventory growth remained unchanged for wholesalers (0.4%). On a yearly basis, business inventories rose 0.7% compared to the same quarter last year.