Steady Operating Profits for Businesses in 2022-23, Despite Economic Challenges

Australia, Police

Article: Businesses in Australia managed to maintain overall operating profits in the financial year of 2022-23, as revealed by the latest data released by the Australian Bureau of Statistics (ABS).

The ABS data highlighted that while operating profit results varied across industries, many businesses faced the obstacle of higher input costs during this period.

The annual data shed light on how businesses responded to a range of economic challenges, including increased input costs, higher demand due to migration, and a rise in non-discretionary spending following the relaxation of COVID-19 restrictions.

Interestingly, the data showed that some businesses were able to pass on these higher costs to consumers.

Industries that benefited from these factors and showcased operating profit growth included Retail ($5.

Wholesale ($6 billion), Transport ($4.

Accommodation and Food Services ($2.

On the other hand, the Rental, Hiring, and Real Estate Services industry experienced large negative revaluations and operating profit declines ($45.

Reserve Bank of Australia’s actions to reduce inflation by raising the cash rate.

The Mining industry emerged as the frontrunner with the largest growth in operating profit ($57.

This growth can be attributed to energy commodity shortages in Europe and strong demand in Asian markets, benefiting both the Coal Mining and Oil and Gas Extraction sectors.

The ABS is currently seeking feedback from users of this data release through a short survey on the ABS Consultation Hub.

Potential changes to the content or format of future releases of Australian Industry may be influenced by the outcomes of this consultation.

The ABS expressed gratitude towards businesses for their continued support in participating in surveys.

The data collection for this release primarily covered the 12 months ending on June 30, 2023.

However, where businesses were unable to provide information for this period, an alternative accounting period was used.

As always, when reporting ABS data, it is important to attribute the Australian Bureau of Statistics as the source.

For any media requests or interviews, please contact the ABS Media Team via media@abs.

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Additionally, journalists can benefit from the ABS data crash course to learn how to access and interpret data effectively.