SMH 1 June
Gross mining profits bounced 9.2 per cent in the quarter to $15 billion in their first rise since September 2008, as economy-wide profits rose by 3.9 per cent, according to Australian Bureau of Statistics estimates published yesterday.
The figures cast doubt on the mining industry's claims it helped keep Australia out of recession while also highlighting the patchy nature of the economy-wide recovery.
In its attack on the proposed resource tax, the mining industry has argued it played a critical role in supporting growth.
But the Bureau of Statistics numbers underline the heavy hit miners took from the slowdown - their quarterly profits remain almost 40 per cent below the pre-crisis peak of $24.4 billion.
Across all industries, company profits grew by their fastest rate in 18 months, though they are still 14 per cent below their pre-crisis peak. In the months ahead, analysts expect mining to play an increasing role as higher commodity prices filter through to earnings, while the outlook for domestic-focused industries is rather more cautious.
RBS chief economist Kieran Davies said mining profits were set to ''dramatically accelerate'' next quarter, which will take into account annual price increases of 50 to 100 per cent for the nation's biggest exports. ''The mining sector will be the standout, and outside that I think the recovery will be slower,'' Mr Davies said.
Gross mining profits bounced 9.2 per cent in the quarter to $15 billion in their first rise since September 2008, as economy-wide profits rose by 3.9 per cent, according to Australian Bureau of Statistics estimates published yesterday.
The figures cast doubt on the mining industry's claims it helped keep Australia out of recession while also highlighting the patchy nature of the economy-wide recovery.
In its attack on the proposed resource tax, the mining industry has argued it played a critical role in supporting growth.
But the Bureau of Statistics numbers underline the heavy hit miners took from the slowdown - their quarterly profits remain almost 40 per cent below the pre-crisis peak of $24.4 billion.
Across all industries, company profits grew by their fastest rate in 18 months, though they are still 14 per cent below their pre-crisis peak. In the months ahead, analysts expect mining to play an increasing role as higher commodity prices filter through to earnings, while the outlook for domestic-focused industries is rather more cautious.
RBS chief economist Kieran Davies said mining profits were set to ''dramatically accelerate'' next quarter, which will take into account annual price increases of 50 to 100 per cent for the nation's biggest exports. ''The mining sector will be the standout, and outside that I think the recovery will be slower,'' Mr Davies said.
