Fed: Business rakes in $61 billion worth of profits

AAP General News (Australia)
12-01-2008
Fed: Business rakes in $61 billion worth of profits

CANBERRA, Dec 1 AAP - Businesses are yet to feel the full effects of the global economic
crisis, ratcheting up total profits worth $61 billion in the three months to September.

This was a 5.2 per cent seasonally-adjusted increase on the previous quarter, more
than the 3.5 per cent hike economists forecast for gross operating profits.

The Australian Bureau of Statistics data also showed business inventories - goods in
stores and in warehouses - rose 0.7 per cent in the September quarter, in line with expectations.

This build-up in inventory is more likely to be the result of slack consumer demand
rather than businesses restocking, given the current weak economic outlook.

The data feeds into Wednesday's gross domestic product (GDP) for the September quarter.

Prior to Monday's data, economists were forecasting GDP to rise just 0.2 per cent for
an annual growth rate of 1.9 per cent.

AAP cb/rl/tnf

KEYWORD: BUSINESS

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