Australia Corporate Profits Drop in Q1
2026-06-02 01:47
By
Judith Sib-at
1 min. read
Corporate profits in Australia fell 1.3% quarter-on-quarter in the first quarter of 2026, reversing an upwardly revised 5.9% increase in the previous quarter and missing expectations of a 0.5% rise.
The decline signals a broad cooling in business profitability momentum after a strong finish to the previous year, mainly due to a sharp drop in mining profits (-9.1% vs 8.0% in Q4).
Lower profits were also recorded in accommodation and food services (-2.0% vs 5.7%) and financial and insurance services (-9.6% vs 3.1%).
In addition, profit growth moderated in wholesale trade (4.5% vs 6.4%), transport, postal and warehousing (0.9% vs 8.1%), professional, scientific and technical services (3.1% vs 9.2%), and rental, hiring and real estate services (1.7% vs 3.0%).
On the other hand, profits rose further in manufacturing (3.5% vs 2.7%) and construction (7.9% vs 4.3%), while rebounded in retail trade (5.9% vs -0.2%).
Yearly, corporate profits were up 3.2%, slowing from a 4.2% growth previously.