SYDNEY - [AAP] Company profits in Australia showed a surprise decline in the third quarter of 2017, with wage growth and investments likely weighing on performance.

Gross operating profits fell 0.2 per cent on a seasonally adjusted basis in the three months to September 30, data from the Australian Bureau of Statistics showed.

That compared to market expectations of a 0.2 per cent increase.

Profits are still up 20 per cent over the 12-month period to September 30.

The quarterly performance was hit by a 3.3 per cent fall in mining company profits as a strong run in coal and iron ore prices tapered down during the period.

Manufacturing profits also fell 6.4 per cent, construction was down 0.5 per cent, and rental, hiring and real estate services slumped 9.2 per cent.

However, retail trade profits bounced back 4.3 per cent, wholesale trade showed a 2.6 per cent improvement, while profits in the financial and insurance services jumped 12.4 per cent in the quarter.

Estimated growth in wages and salaries was 1.1 per cent higher over the three-month period and 2.5 per cent higher for the year, according to the seasonally adjusted figures.

Estimated business inventories, in seasonally adjusted chain volume terms, rose 0.2 per cent in the September quarter, and were up 1.1 per cent in the year.

The data business indicators come ahead of the September quarter's gross domestic product figures, due out on Wednesday, with most economists expecting a quarterly improvement of 0.7 to 0.8 per cent.

The Australian dollar shrugged off Monday's data release, with the local currency at 75.95 US cents by 1220 AEDT, compared to 75.91 just before the release.

 

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