Operating profits fell 8.6 per cent in 2023-24, according to data released today by the Australian Bureau of Statistics (ABS) that provides new detail on the conditions businesses faced in 2023-24.
Robert Ewing, ABS head of business statistics, said: "Tough operating conditions saw operating profits fall in seven out of nineteen industries."
"The drop in profitability in 2023-24 reflects an economy responding to inflationary pressures, higher interest rates, and lower global demand in key sectors."
"While some industries benefited from stabilising input costs and strong domestic economic activity, others were impacted by weaker export conditions and higher labour costs."
"The Australian Industry figures published today highlight how businesses have adapted to a complex economic environment."
The Mining industry saw operating profit fall by $66.7b, as prices moderated from the highs of 2022-23. The high LNG, thermal coal, and spodumene (Australia's main lithium mineral) prices seen in the previous year, unwound as global demand stabilised.
Falls were also seen in operating profits for the Agriculture, forestry and fishing industry (down $11.2 billion), and Rental, hiring and real estate services (down $12.3 billion).
The largest rise in operating profit was reported by the Transport Industry ($19.4b). A large rise was also reported by the Construction industry (up $5.9 billion), with a large number of new and ongoing infrastructure projects driven by high government investment.
| Industry | 2021-22 ($m) | 2022-23 ($m) | 2023-24 ($m) |
|---|---|---|---|
| Agriculture, Forestry and Fishing | 23,022 | 22,874 | 11,664 |
| Mining | 184,726 | 243,501 | 176,772 |
| Manufacturing | 40,609 | 39,139 | 33,558 |
| Electricity, Gas, Water and Waste Services | 14,302 | 13,435 | 14,409 |
| Construction | 44,283 | 52,079 | 58,027 |
| Wholesale Trade | 35,888 | 42,208 | 44,376 |
| Retail Trade | 33,220 | 38,042 | 38,205 |
| Accommodation and Food Services | 10,388 | 12,619 | 11,842 |
| Transport, Postal and Warehousing | 14,835 | 18,790 | 38,192 |
| Information Media and Telecommunications | 5,014 | 4,451 | 4,068 |
| Rental, Hiring and Real Estate Services | 101,873 | 55,679 | 43,345 |
| Professional, Scientific and Technical Services | 109,433 | 66,053 | 72,579 |
| Administrative and Support Services | 10,541 | 11,982 | 12,325 |
| Public Administration and Safety | 1,154 | 1,223 | 1,250 |
| Education and Training | 5,325 | 6,044 | 6,110 |
| Health Care and Social Assistance | 33,547 | 37,006 | 37,373 |
| Arts and Recreation Services | 5,259 | 5,533 | 5,695 |
| Other Services | 11,692 | 11,605 | 11,477 |
