Business profits suggesting for a stronger GDP

Australian-economyThe economy of Australia seems to be back on track to show a stronger economic growth in the second quarter as the business profits grew up sharply in the three months till the end of June. Meanwhile a local economist has said that the stronger economy could raise a 50-50 chance of interest rate rise by the end of this year.

According to the reports, the company gross operating profits rose up by 18.9% with current prices in the second quarter of the current year.

The Australian Bureau of Statistics (ABS) has said that the company gross operating profits were grew up by 27.5% in the total year.

The estimated business inventories in terms of seasonally adjusted chain fell down by 0.5% in the second quarter compared to a rise of 0.5% in the previous quarter but the economists were expecting a growth of 0.5% in inventories in the second quarter.

According to the senior economist of Commonwealth Bank, Michael Workman, the strong business profits will definitely boost the gross domestic product (GDP) of Australia. These figures have brought some sort of relief for the Australian economy.