Business turnover sees mixed results in February

Mining turnover plunges amid falling commodity prices

Business turnover sees mixed results in February


By Mina Martin

The experimental Monthly Business Turnover Indicator (MBTI) for February 2024 showed a mixed economic landscape with a 1.1% decrease in the seasonally adjusted 13-industry aggregate, largely driven by a significant decline in mining, ABS reported.

Sharp decline in the mining sector

The downturn was most pronounced in the mining sector, which saw a significant drop of 9.6%.

“The large fall in mining drove the 1.1% drop in turnover for the 13-industry aggregate. This was even with only three of the 13 industries showing a fall,” said Robert Ewing, ABS head of business statistics, in a media release.

The decline in mining turnover is primarily attributed to falling commodity prices, notably iron ore. However, this was partially offset by a 5.1% increase in the oil and gas extraction subdivision, reflecting some resilience within the broader mining sector.

Industry performance overview

In trend terms, the 13-industry aggregate saw a minor reduction of 0.1%, marking the first monthly fall since August of the previous year.

Despite the downturn in mining, other sectors experienced growth. Arts and recreation services led with a 4.8% increase, largely driven by events such as the Australian Grand Prix. Accommodation and food services also saw a significant rise of 3.2%, boosted by ongoing consumer travel and major events like the Taylor Swift concerts in Melbourne and Sydney.

Overall, 11 out of 13 industries monitored showed year-on-year increases.

Year-on-year growth and declines

Comparatively, February 2023 showed a positive trend with 11 out of the 13 industries recording higher turnover.

The industries with the most substantial annual increases included electricity, gas, water, and waste services (14.6%), construction (11.2%), and accommodation and food services (9.9%). On the flip side, the mining sector not only led the monthly downturn but also marked the largest annual fall with a 13.8% decrease, ABS reported.

For further details, access Monthly Business Turnover Indicator, February 2024. To compare the latest figures with the previous months, click here.

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