Latest data available, updated 16 July 2024
As the Australian economy slows, the performance of Australian industries has begun to slow in the 2023-24 financial year. Value-add, sales and profits growth, employment generation are all currently declining, while capex growth remain unchanged.
Growth in Australian industry value-add was 5.1% in the year to the March quarter 2024. Following a period of volatility during the pandemic, growth in industry value-add has been steadily slowing since mid-2022. While most industries are now slowing, some – such as real estate, transport, financial services and telecoms– continue to enjoy growth.
Business income from sales of goods and services grew 0.8% in the year to the March quarter 2024. Sales income growth has slowed considerably following a post-pandemic rebound, when it grew at 19.8% y/y in the third quarter of 2022. Sales growth remains positive for arts and recreation, utilities and retail trade sectors but has fallen in wholesale, mining and manufacturing industries.
Australian filled jobs dropped to 2.3% p.a. in the year to the March quarter 2024 from its highest year on year rise of 7.7% in mid-2022. Job creation has been consistently elevated since the pandemic, and remains above long-run trend. It is slower in some industries struggling with skills shortage and vacancy challenges, particularly manufacturing, retail and accommodation and food.
Non-mining capex in Australia grew 10.6% in the year to the March quarter 2024, down a peak of 23.4% in June quarter 2023. Capex growth has been steadily increasing since mid-2022, bucking a declining trend seen in other industrial indicators. Construction, ICT and telecoms and accommodation and food all report high capex growth, while the wholesales, real estate and administrative sectors are low outliers.
Non-mining business profits grew 0.3% in the year to the March quarter 2024. Following a period of volatility during the pandemic, profits growth has been slowing since 2022. Most industries report slowing but still positive profits growth, with wholesale trade one of the few to see profits decline (-10%) over the last year.
Industry value add measures the value of industry output less the value of intermediate inputs. It provides an indicator of how much economic output is being generated by an industry.
Income from sales of goods and services measures the value of goods sales and fees from services and commissions. It provides an indicator of business sales performance within industries.
Filled jobs measures the number of jobs which are not currently vacant. It includes both full- and part-time employees. Growth in filled jobs provides an indicator of aggregate job creation by industry.
Capital expenditure (capex) measures expenditure on new tangible assets, such as buildings, structures, equipment, plant and machinery. It excludes business investment on non-tangible assets. It provides an indicator of business investment in physical assets.
Business gross operating profit measures the operating profit of both incorporated (company) and unincorporated businesses. It excludes interest income and expenses, depreciation and amortisation, and financial items not related to the production of goods and services. It provides an indicator of changes in the profitability of industries, before financial factors such as cost of capital and tax are taken into account.
Sources: The data in this factsheet are derived from various ABS industry and labour surveys. Data is collected on a quarterly basis, and is typically released two months following the reference period (i.e. June quarter data is released in early September). Ai Group Research & Economics will update this factsheet as ABS data is released. Refer to notes in the charts for links to the ABS source data.
Ai Group Research & Economics Team
Website: Research and Economics Resource Centre
Email: economics@aigroup.com.au
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