Profits, profits, profits!

Australian company profits before income tax (excluding financials) grew on a year-on-year basis for a third consecutive month, expanding at a rate of 47% in June (but down 4.8% for the quarter).

Some 27% of those profits came from the mining industry, up from just 13% a year ago, highlighting how important that sector is to Australia's recent economic performance. It has staged somewhat of a mini recovery over the past few quarters as commodity prices rebounded, leading to record corporate profits in Australia. But mining profits tell us nothing of how the "real" Australia is fairing, and how non-mining related equities might perform. For example, mining profits have breached the A$20 billion mark three times, in September 2008, …

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About the author

Dr Justin Pyvis is the Founder and Chief Economist at Pixelics. Justin is a published academic who has previously worked at AECOM, a global consultancy on the Fortune 500 and more recently with Asianomics Group, an economic, corporate and technical analysis research company based in Hong Kong.