Australia Business Inventories Slip in Q2

Australia’s business inventories fell 0.2% quarter-on-quarter in the second quarter of 2026, reversing an upwardly revised 0.7% increase in the previous three-month period. The decline was driven mainly by sharp drawdowns in mining inventories (-4.8% vs 5.8% in Q1) and electricity, gas, water and waste services (-13.1% vs 6.6%). Inventory growth also slowed in accommodation and food services (3.5% vs 4.5%). In contrast, retail trade inventories returned to expansion (1.0% vs -1.6%), while wholesale trade stocks rose at a faster pace (1.7% vs 1.2%). In addition, manufacturing inventories declined at a slower pace (-0.9% vs -1.1%). On a yearly basis, business inventories fell 0.4%, slipping further from a downwardly revised 0.2% decline in Q1 2026.

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.