FX.co ★ Australia Q4 Business Inventories Fall Much Softer

Australia’s business inventories slipped 0.1% quarter-on-quarter in Q4 2025, following a modestly revised 0.8% decline in the previous quarter. This was the second consecutive quarterly fall, but the slower pace of contraction indicates firms are trimming stock levels more cautiously amid softer demand and higher financing costs.

By sector, inventories decreased for manufacturers (-0.4% vs 0.5% in Q3), retailers (-0.4% vs -1.9%), wholesalers (-0.1% vs 0.2%), and the accommodation and food services industry (-3.0% vs -1.3%). In contrast, inventories rebounded in the mining sector (0.7% vs -4.7%) and continued to rise among electricity providers (3.7% vs 2.3%), partly reflecting project-related activity and energy needs.

On an annual basis, business inventories were unchanged, after a 0.2% increase in Q3.