Australia Business Inventories Rebound in Q1

Australia’s business inventories rose 0.5% quarter-on-quarter in Q1 2026, rebounding from two consecutive quarterly declines of 0.1% in Q4 and 0.8% in Q3. It marked a return to modest expansion in overall stock levels, suggesting a gradual rebuilding of inventories after a soft end to 2025. By sector, gains were driven by mining (5.8% vs 0.0% in Q4) and electricity, gas, water and waste services (6.1% vs 4.5%). Wholesale trade also returned to growth (1.0% vs -0.1%), while accommodation and food services swung back into expansion (4.3% vs -2.6%). In contrast, manufacturing (-1.3% vs -0.1%) and retail trade contracted further (-1.7% vs -0.5%). On an annual basis, business inventories fell 0.3%.

Australia’s business inventories edged down 0.1% qoq in Q4 2025, easing from a marginally revised 0.8% drop in the previous period. It marked a second consecutive quarterly decline, though the pace of contraction slowed notably, suggesting firms may be adjusting stock levels more cautiously amid softer demand and elevated financing costs. By sector, inventories fell for manufacturers (-0.4% vs 0.5% in Q3), retailers (-0.4% vs -1.9%), wholesalers (-0.1% vs 0.2%), and the accommodation and food services sector (-3.0% vs -1.3%). In contrast, stocks rebounded at miners (0.7% vs -4.7%) and rose further at electricity providers (3.7% vs 2.3%), partly reflecting project-related activity and energy demand. On an annual basis, business inventories were flat, following a 0.2% increase in Q3.

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.