Australia’s business inventories declined by 0.2% quarter-on-quarter in the second quarter of 2026, reversing an upwardly revised 0.7% increase in the previous three months. The downturn was largely driven by steep reductions in mining inventories (-4.8% vs 5.8% in Q1) and in electricity, gas, water and waste services (-13.1% vs 6.6%). Inventory growth also moderated in accommodation and food services (3.5% vs 4.5%).
By contrast, retail trade inventories returned to growth (1.0% vs -1.6%), while wholesale trade stocks expanded at a faster rate (1.7% vs 1.2%). Manufacturing inventories also contracted more slowly (-0.9% vs -1.1%). On an annual basis, business inventories fell 0.4%, extending the decline from a downwardly revised 0.2% drop in Q1 2026.
