FX.co ★ Australia Corporate Profits Unexpectedly Fall in Q1

In the first quarter of 2025, Australian corporate profits saw an unexpected decline of 0.5% on a quarter-on-quarter basis, contrary to market projections of a 1.1% increase. This downturn reverses the upwardly revised 6.0% growth observed in the last quarter of 2024. The contraction in profits was largely attributed to significant decreases in the financial and insurance services sector (falling by 10.6% compared to the previous growth of 38.3%), in administrative and support services (which dropped by 6.1% against an 8.5% increase), and in professional, scientific, and technical services (which saw a decline of 1.9% from a previous rise of 1.5%). Over the year ending in March, corporate profits contracted by 5.0%, following a 6.2% decrease in the preceding quarter.