In Australia, business inventories rose by 0.1% for the fourth quarter of 2024, surpassing expectations of no change. This figure follows a decline of 0.9% in the previous quarter.<\/p>\n
Operating profit increased by 5.9% quarter-on-quarter, significantly higher than the anticipated 1.8% after a prior decrease of 4.6%. The positive inventory data suggests a potentially stronger GDP outcome for the fourth quarter, with results set to be released on Wednesday.<\/p>\n
Stock levels in Australia edged slightly higher, defying expectations of stagnation. Although modest, this shift points to a possible stabilisation after the contraction from the prior period. When businesses hold more stock, it often reflects either increased demand or preparations for stronger sales ahead. <\/p>\n
Meanwhile, company earnings posted a robust rebound, extending well beyond analysts\u2019 forecasts. A 5.9% surge in profits suggests that businesses managed to recoup losses from the previous decline far more quickly than expected. This upswing introduces a fresh dynamic to growth projections, especially with upcoming GDP figures expected mid-week. <\/p>\n
For those active in the market, these shifts change the equation. An uptick in inventories, paired with stronger-than-expected earnings, implies that businesses may be in a stronger position than feared. If the GDP figures align with these developments, broader market sentiment could shift accordingly. <\/p>\n
We must also keep in mind that prior inventory contractions had pointed to underlying weakness. The reversal of that trend raises questions about whether this improvement is sustainable or simply a correction after an overly sharp decline. Either way, this will shape expectations for the months ahead. <\/p>\n
With this new data, previous assumptions regarding economic momentum may no longer hold. Adjustments will need to be made as the full picture becomes clearer in the days to come.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Australia\u2019s business inventories rose 0.1% in Q4 2024, while operating profit surged 5.9%, exceeding expectations.<\/p>\n","protected":false},"author":2,"featured_media":16962,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[129],"tags":[],"class_list":["post-17525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/posts\/17525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/comments?post=17525"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/posts\/17525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/media\/16962"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/media?parent=17525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/categories?post=17525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsmy.com\/cn\/wp-json\/wp\/v2\/tags?post=17525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}