Economic briefing note on gross operating profits in September 2016

September 2016

Release date: 5 December 2016
Next release: 27 February 2017

Australia's company gross operating profits (GOP) increased by $0.6 billion (up 1.0 per cent) to $64.2 billion in the September quarter 2016. The increase over the quarter was driven by an increase in mining GOP of $1.0 billion (up 5.8 per cent).

Non-mining GOP decreased 0.7 per cent in the September quarter 2016, driven by declines in professional services, utilities, media-telecom, finance, construction, admin services, manufacturing, arts, and rental-real estate. This was partially offset by increases in transport, hospitality, retail, wholesale, and other services.

In the year to the September quarter 2016, non-mining GOP decreased $1.2 billion (down 2.4 per cent), with construction experiencing the largest decrease of $0.9 billion (down 19.9 per cent) over this period. 

Gross operating profits by industry

Industry September quarter 2016 ($ billion) Change since June quarter 2016, $ billion (%) Annual change to September quarter 2016, $ billion (%)
Mining 17.61.0 (5.8) 0.9 (5.6)
Manufacturing 7.0-0.1 (-0.9) -0.008 (-0.1)
Utilities 2.8-0.2 (-7.6) -0.2 (-6.0)
Construction 3.5 -0.1 (-2.4) -0.9 (-19.9)
Wholesale 5.3 0.1 (1.4) -0.2 (-3.7)
Retail 4.3 0.2 (4.0) -0.3 (-5.8)
Hospitality 1.80.3 (18.2) 0.1 (6.2)
Transport 5.9 0.4 (6.4) 0.5 (8.5)
Media-Telecom 4.5-0.2 (-4.5) -0.3 (-6.2)
Finance 1.0-0.2 (-17.8) -0.2 (-13.6)
Rental-Real estate 5.6-0.01 (-0.2) 0.3 (5.7)
Professional services 2.4-0.3 (-12.3) -0.5 (-15.6)
Admin services 0.8-0.1 (-7.9) 0.2 (43.1)
Arts 1.1-0.04 (-3.3) 0.1 (9.6)
Other services 0.6 0.1 (10.1) 0.1 (9.7)
Total 64.20.6 (1.0) -0.2 (-0.3)
Non-mining total 46.6-0.3 (-0.7) -1.2 (-2.4)

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 September 2006 to September 2016. This chart shows the gross operating profits for Manufacturing, Wholesale, Finance, Construction, Transport, and Rental-Real Estate industries in Australia between September quarter 2006 and September quarter 2016.  The Manufacturing industry recorded gross operating profits of $8.5 billion in September 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 September quarter 2016 gross operating profits in the Manufacturing industry were $7.0 billion.  The Wholesale industry recorded gross operating profits of $4.3 billion in September quarter 2006. Gross operating profits in the Wholesale industry reached a high of $5.6 billion in the June quarter 2015. In the September quarter 2016 gross operating profits in the Wholesale industry were $5.3 billion.  The Finance industry recorded gross operating profits of $1.8 billion in September quarter 2006. Gross operating profits in the Finance industry reached a high of $2.0 billion in the December quarter 2010. In the September quarter 2016 gross operating profits in the Finance industry were $1.0 billion.  The Construction industry recorded gross operating profits of $2.2 billion in September quarter 2006. Gross operating profits in the Construction industry reached a high of $5.2 billion in the March quarter 2015. In the September quarter 2016 gross operating profits in the Construction industry were $3.5 billion.  The Transport industry recorded gross operating profits of $2.8 billion in September quarter 2006. Gross operating profits in the Transport industry reached a high of $5.9 billion in the September quarter 2016. In the September quarter 2016 gross operating profits in the Transport industry were $5.9 billion.  The Rental-Real Estate industry recorded gross operating profits of $2.8 billion in September quarter 2006. Gross operating profits in the Rental-Real Estate industry reached a high of $5.6 billion in the June quarter 2016. In the September quarter 2016 gross operating profits in the Rental-Real Estate industry were $5.6 billion.

Quarter Manufacturing ($ billion) Wholesale ($ billion) Finance ($ billion) Construction ($ billion) Transport ($ billion) Rental-Real estate ($ billion)
September 2006 8.5 4.3 1.8 2.2 2.82.8
June 2008 10.3 n/a n/a n/a n/a n/a
December 2010 n/a n/a 2.0 n/a n/a n/a
March 2015 n/a n/a n/a 5.2 n/a n/a
June 2015 n/a 5.6 n/a n/a n/a n/a
September 2015 n/a n/a n/a n/a 5.9 n/a
June 2016n/an/an/an/an/a5.6
September 2016 7.0 5.3 1.0 3.5 5.9 5.6

Total gross operating profits for Australia

Gross Operating Profits in Australia from September 2006 to September 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 September quarter 2006 and September 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 $31.8 billion in September 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 September quarter 2015 gross operating profits trended upwards, reaching $47.8 billion in September quarter 2015. Between June quarter 2015 and March quarter 2016, gross operating profits trended downwards, falling to $45.3 billion in March quarter 2016. In September quarter 2016 Gross Operating Profits in the combined non-mining industries in Australia improved to reach $46.6 billion. The mining industry recorded gross operating profits of $14.0 billion in September 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 $23.8 billion in March quarter 2014. Since March quarter 2014 gross operating profits in the mining industry in Australia have trended downwards, falling to $17.6 billion in September quarter 2016.

Quarter Mining ($ billion) Non-mining industries ($ billion)
September 2006 14.0 31.8
September 2007 12.0 n/a
June 2008 n/a 42.0
December 2008 24.2 n/a
March 2009 n/a 37.3
September 2009 13.7 n/a
September 2011 25.7 n/a
December 2012 17.2 n/a
March 2014 23.8 n/a
September 2015 n/a 47.8
March 2016 n/a 45.3
September 2016 17.6 46.6

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

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Page last updated: 29 December 2016