Australia Business Inventories q/q

Australia Business Inventories q/q measures a change in the total amount of all goods stored in warehouses of retailers, wholesalers and manufacturers, in the reported quarter compared to the previous one.

The indicator is calculated based on data collected by the Australian Bureau of Statistics from a survey of 15,000 private companies. The survey coverage includes companies representing all industries in accordance with the standard industrial classification adopted in Australia and New Zealand. The full report version provides data stratified by industry, number of employees and territory. The indicator is seasonally adjusted.

The survey does not include companies with less than 20 employees (data for such companies are calculated based on purchases and sales). Micro non-employing businesses are excluded.

Wholesale inventories are rarely interpreted separately. Economists often consider this indicator together with the volume of sales. In general, the ratio of sales to inventories is estimated. This estimate may suggest production growth or decline in the near future. For example, if inventories grow slower than sales, then there is a shortage of products, and production growth can be expected. Conversely, wholesale overstocking suggests an oversupply and a possible near-term slowdown in production.

Production makes a significant contribution to national GDP, that is why a sharp increase or decrease in wholesale inventories may indirectly affect the Australian dollar quotes.