Economic briefing note on gross operating profits in June 2016

June 2016

Release date: 5 September 2016
Next release: 5 December 2016

Australia's company gross operating profits (GOP) increased by $4.1 billion (up 6.9 per cent) to $63.7 billion in the June quarter 2016. The increase over the quarter was driven by an increase in mining GOP of $2.0 billion (up 14.2 per cent).

Non-mining GOP increased 4.6 per cent in the June quarter 2016, driven by increases in manufacturing, finance, rental-real estate, professional services, admin services, utilities, media-telecom, retail, transport, arts, wholesale, and other services. This was partially offset by declines in construction and hospitality.

In the year to the June quarter 2016, non-mining GOP decreased $0.3 billion (down 0.7 per cent), with construction experiencing the largest decrease of $1.9 billion (down 37.7 per cent) over this period. 

Gross operating profits by industry

Industry June quarter 2016 ($ billion) Change since March quarter 2016, $ billion (%) Annual change to June quarter 2016, $ billion (%)
Mining 16.22.0 (14.2)0.3 (2.0)
Manufacturing 7.41.4 (22.6) 0.7 (10.9)
Utilities 2.90.2 (6.4) -0.1 (-2.8)
Construction 3.2-1.2 (-27.6) -1.9 (-37.7)
Wholesale 5.30.1 (1.0) -0.4 (-6.6)
Retail 4.40.2 (3.7) -0.2 (-4.3)
Hospitality 1.4-0.3 (-17.7) -0.2 (-14.6)
Transport 5.50.1 (1.8) 0.4 (8.1)
Media-Telecom 4.80.2 (3.6) 0.1 (1.2)
Finance 1.10.5 (96.6) 0.5 (89.9)
Rental-Real estate 5.70.4 (8.3) 0.6 (12.0)
Professional services 3.00.3 (11.4) -0.1 (-4.5)
Admin services 0.90.2 (28.6) 0.3 (41.0)
Arts 1.20.1 (8.3) 0.1 (14.4)
Other services 0.70.0 (7.8) -0.1 (-10.5)
Total 63.74.1 (6.9) 0.0 (0.0)
Non-mining total 47.52.1 (4.6) -0.3 (-0.7)

Total gross operating profits for Australia

Gross Operating Profits in Australia from June 2006 to June 2016, broken down for mining and non-mining industries. This chart shows the gross operating profits for the mining industry and aggregated non-mining industries between June quarter 2006 and June quarter 2016. Gross operating profits in the mining industry were significantly more volatile over this time period. The combined non-mining industries recorded gross operating profits of $30.9 billion in June quarter 2006. Gross operating profits in the combined non-mining industries grew in an upwards trend until the June quarter 2008, reaching $42.0 billion in this quarter. Gross Operating Profits in the combined non-mining industries then fell to $37.3 billion in the March 2009 quarter. Between the March quarter 2009 and the June quarter 2015 gross operating profits trended upwards, reaching $47.8 billion in June quarter 2015. Between June quarter 2015 and March quarter 2016, gross operating profits trended downwards, falling to $45.4 billion in March quarter 2016. In June quarter 2016 Gross Operating Profits in the combined non-mining industries in Australia improved to reach $47.5 billion. The mining industry recorded gross operating profits of $14.6 billion in June quarter 2006. Gross operating profits then trended downwards to $12.0 billion in the September 2007 quarter. Between September quarter 2007 and December quarter 2008 gross operating profits in the mining industry trended upwards, reaching $24.2 billion in December quarter 2008. Gross Operating Profits in the mining industry then fell to $13.7 billion in the September 2009 quarter. Between the September quarter 2009 and the September quarter 2011 gross operating profits trended upwards, reaching $25.7 billion in September quarter 2011. Between September quarter 2011 and December quarter 2012, gross operating profits trended downwards, reaching a low of $17.2 billion in December quarter 2012. Gross operating profits in the mining industry rallied between December 2012 and March quarter 2014, reaching $23.7 billion in March quarter 2014. Since March quarter 2014 gross operating profits in the mining industry in Australia have trended downwards, falling to $16.2 billion in March quarter 2016.

Quarter Mining ($ billion) Non-mining industries ($ billion)
June quarter 2006 14.6 30.9
September quarter 2007 12.0 n/a
June quarter 2008 n/a 42.0
December quarter 2008 24.2 n/a
March quarter 2009 n/a 37.3
September quarter 2009 13.7 n/a
September quarter 2011 25.7 n/a
December quarter 2012 17.1 n/a
March quarter 2014 23.7 n/a
June quarter 2015 n/a 47.8
March quarter 2016 16.2 45.4
June quarter 2016n/a47.5

Gross operating profits for select Australian industries

Gross Operating Profits in the Manufacturing, Wholesale, Finance, Construction, Transport, and Rental-Real Estate industries in Australia from June 2006 to June 2016.  This chart shows the gross operating profits for Manufacturing, Wholesale, Finance, Construction, Transport, and Rental-Real Estate industries in Australia between June quarter 2006 and June quarter 2016.  The Manufacturing industry recorded gross operating profits of $8.0 billion in June quarter 2006. Gross operating profits in the Manufacturing industry grew in an upwards trend until the June quarter 2008, reaching $10.3 billion in this quarter. In the June quarter 2016 gross operating profits in the Manufacturing industry were $7.4 billion.  The Wholesale industry recorded gross operating profits of $4.2 billion in June quarter 2006. Gross operating profits in the Wholesale industry reached a high of $5.7 billion in the  June quarter 2015. In the June quarter 2016 gross operating profits in the Wholesale industry were $5.3 billion.  The Finance industry recorded gross operating profits of $1.6 billion in June quarter 2006. Gross operating profits in the Finance industry reached a high of $2.0 billion in the  December  quarter 2010. In the June quarter 2016 gross operating profits in the Finance industry were $1.1 billion.  The Construction industry recorded gross operating profits of $2.4 billion in June quarter 2006. Gross operating profits in the Construction industry reached a high of $5.3 billion in the  March  quarter 2015. In the June quarter 2016 gross operating profits in the Construction industry were $3.2 billion.  The Transport industry recorded gross operating profits of $2.5 billion in June quarter 2006. Gross operating profits in the Transport industry reached a high of $5.5 billion in the  September  quarter 2015. In the June quarter 2016 gross operating profits in the Transport industry were $5.5 billion.  The Rental-Real Estate industry recorded gross operating profits of $3.0 billion in June quarter 2006. Gross operating profits in the Rental-Real Estate industry reached a high of $5.7 billion in the  June  quarter 2016.

Quarter Manufacturing ($ billion) Wholesale ($ billion) Finance ($ billion) Construction ($ billion) Transport ($ billion) Rental-Real estate ($ billion)
June quarter 2006 8.0 4.21.6 2.4 2.5 3.0
June quarter 2008 10.3 n/a n/a n/a n/a n/a
December quarter 2010 n/a n/a 2.0 n/a n/a n/a
March quarter 2015 n/a n/a n/a 5.3 n/a n/a
June quarter 2015 n/a 5.7 n/a n/a n/a n/a
September quarter 2015 n/a n/a n/a n/a 5.5 n/a
June quarter 20167.45.31.13.25.55.7

Source: Australian Bureau of Statistics (ABS), cat. no. 5609.0 – Housing finance, Australia

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Page last updated: 23 September 2016