Australia Business Inventories

Australia's business inventories unexpectedly fell in seasonally-adjusted terms by 1.7% QoQ in the fourth quarter of 2023, compared to market forecasts of flat reading and following a 1.2% drop in the previous quarter. It was the steepest decline in business inventories since the second quarter of 2020, mainly due to a sharp decline in mining (-5.5% vs 8.7% in Q3). Also, business inventories shrank for manufacturing and electricity, gas, water & waste services (-1.2% vs 0.5%), electricity, gas, water & waste services (-4.9% vs 3.7%), wholesale trade (-1.5% vs 0.1%), accommodation & services (-3.6% vs -2.0%,), and retail trade (-0.3% after showing no growth in Q3). Through the year to December, business inventories contracted by 0.6%, reversing from 1.2% growth in the prior quarter.