Company profit rise, Consumer prices dip in November: Midday Roundup

Business inventories fell during the September quarter but this made way for a boost in sales, according to the latest figures from the Australian Bureau of Statistics.

Profits also rose during the quarter, along with wages and salaries.

The figures show inventories fell by a seasonally adjusted 1.1% during the quarter, but that the seasonally adjusted estimate for manufacturing sales rose by 1.3%.

The seasonally adjusted estimate rose for wholesale trade of goods and services by 2.2%.

Gross operating profits rose by 4.8% in the quarter, while wages and salaries rose by 1.8%

Consumer prices fall in November

Inflation fell during November led by falls in fruit and vegetable costs, according to the latest figures from the TD Securities-Melbourne Institute.

The gauge fell 0.1% in November, following a 0.1% rise in October and September. The year to November shows inflation was at 2.1%

Fruit and vegetable prices fell 2.1% in November, with fuel down 3.5%, although prices rose for household appliances, utensils and tools, furniture and furnishings and new dwelling purchases.

“Third quarter GDP (gross domestic product) is shaping up to post another strong outcome this week, where we expect another quarterly growth rate of at least 1%, driven by consumption and investment, for annual GDP growth of 2.5%,” TD head of Asia-Pacific research Annette Beacher said in a statement.

Beacher has said the RBA should not rush to cut rates next month.

Job ads remain flat in November

Job ads remained flat in November, despite the previous four months recording declines, according to the latest figures from the ANZ job ads survey.

Total ads were down 0.2% from last year, with the November result coming over a 0.7% decline in October.

Newspaper job ads improved 0.6%, although these are down 15.9% from last year. Internet ads were flat and 1% higher than last year.

“The tentative slowdown in the pace of job advertising decline, if sustained, is an encouraging development as it would signal only mild upward pressure on the unemployment rate, as well as less pressure for Australian interest rates to fall much further,” ANZ head of Australian economics and property research Ivan Colhoun said in a statement.

ANZ welcomes confirmation in fees case

ANZ has welcomed a decision by the Federal Court to support a majority of decisions it made to charge fees, after the company was attacked in a class action lawsuit led by IMF.

The Court found that honour fees, dishonour fees, over-limit fees and non-payment fees could not be categorised as penalties, but did find that late payment fees could.

“The one finding in IMF’s favour does not provide a resolution for class action participants,” chief executive Philip Chronican said in a statement.

“It’s a complex case still in the preliminary stages and we will continue to vigorously defend the IMF action next year.”

Shares flat after weak lead from US

The Australian sharemarket has opened flat this morning, although has risen slightly as investors react to news from Europe that Italy will adopt strict austerity measures to avoid a financial crisis.

The benchmark S&P/ASX200 index was up 23 points or 0.6% to 4311.6 at 12.10 AEST, while the Australian dollar remained at $US1.02c.

AMP shares rose 0.59% to $4.38, while Commonwealth Bank shares rose 0.4% to $49.75. NAB shares rose 0.51% to $24.67, as Westpac rose 0.46% to $21.67.