Australian companies raked in more profit than expected in the June quarter and wages went up in most industries.
Company gross operating profits rose two per cent in the quarter and are up 11.4 per cent from a year ago, according to seasonally adjusted figures from the Australian Bureau of Statistics.
Economists had expected profits would rise by a more modest 1.3 per cent.
Estimated growth in wages and salaries was 1.2 per cent for the quarter and 4.5 per cent for the year.
Wages rose in all industries except education and training, where they fell 0.5 per cent, and transport, postal and warehousing, where they were down 0.3 per cent.
They were also unchanged in the “other services” category.
Estimated business inventories, in seasonally adjusted chain volume terms, rose 0.6 per cent in the latest quarter, and were up 1.8 per cent from a year earlier.
The financial services industry experienced the biggest spike in gross operating profits in the quarter, with a 13.3 per cent rise.
But it was profits in the mining sector, which were up 4.4 per cent, that largely contributed to Australia’s overall rise across the three months.
Commodity prices had pointed to a more modest result for miners, Westpac senior economist Andrew Hanlan said.
“Mining was the key surprise,” Ms Hanland said of the profit data.
The data comes ahead of figures being released on the nation’s economic growth on Wednesday.
Economists are expecting they will show gross domestic product was up by 0.7 per cent in the June quarter.