Australian business income sees upward trend amid mixed industry performance

January 27, 2025 — The Australian Bureau of Statistics (ABS) has revealed a 2.0 per cent increase in business turnover for November 2024, with growth observed in 10 out of 13 industries.

The surge in turnover was notably driven by the mining industry, which experienced a remarkable 5.7 per cent rise in November. Key subdivisions within mining saw exceptional results, particularly in oil and gas extraction, which soared by 9.5 per cent, and metal ore mining, which rose by 6.0 per cent. Analysts attribute these increases to strong export volumes, underscoring the mining sector's critical role in Australia's economic framework.

Complementing the mining industry's growth, both manufacturing and transport, postal, and warehousing industries recorded healthy increases of 3.0 per cent, further signaling resilience within Australia’s diverse economic landscape.

However, not all industries shared positive momentum. The services sector faced challenges, with turnover declines noted in Other Services (-1.7 per cent), Arts and Recreation Services (-1.5 per cent), and Accommodation and Food Services (-0.3 per cent). Despite these setbacks, the overall picture indicates a positive trend in business turnover, driven primarily by the resilience of core industries.

Lond-term trends

Long-term trends in business income reveal a complex landscape. The experimental Monthly Business Turnover Indicator compiled by the ABS, based on Australian Taxation Office's Business Activity Statement turnover data, shows a consistent increase from an index value of 132.4 in November 2023 to 133.9 in November 2024. This rising index reflects an upward trajectory for several key industries even as the mining sector faces headwinds.

While mining remains a substantial contributor to Australia’s economy, its overall business turnover trend has declined in recent months, dropping from 147.5 in November 2023 to 129.3. This downturn highlights challenges posed by falling commodity prices amidst increasing global competition and a shifting landscape towards renewable energy sources. Iron ore prices have seen a drop over the past year and demand for Australian coal in international markets are trending downward.

Conversely, industries such as manufacturing and construction are experiencing vigorous growth. The manufacturing turnover index rose from 124.4 in November 2023 to 131.8 in November 2024, driven largely by primary metal production. Meanwhile, the construction sector’s index increased impressively from 134.3 to 146.1, underscoring its significant role in job creation and economic stability.

Moreover, the accommodation and food services sector has shown steady growth over the past two years, with its turnover index climbing from 128.4 in November 2022 to 144.9 in November 2024. This industry continues to be a crucial component of the employment landscape, creating jobs for 1.2 million Australians.

Wholesale trade also reported steady growth, with its index rising from 128.3 to 132.3 over the period, further emphasizing the overall upward trend in business turnover across Australia.

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