SYDNEY, Sept. 4 (Xinhua) -- Australian company profits were down for the second quarter of 2017, according to figures released on Monday, with a 4.5 percent drop overall recorded.
The drop was felt the hardest in the mining sector, which posted a 11.5 percent downswing in their profits for the period, due to the overall fall in commodity prices, particularly iron ore and other base metals.
Profits in the mining sector had reached a record high in the last quarter, according to Kristina Clifton, an economist at the Commonwealth Bank of Australia (CBA), who told Xinhua on Monday that the annual rate of growth for the miners has been 49.5 percent.
"The fall in mining sector profits reflects lower commodity prices. However bulk commodity prices have risen strongly so far in the third quarter, and profits seem set to rebound again," Clifton said.
The huge downswing was not felt overall, with non-mining profits down only 0.6 percent for the second quarter of the year, while still being up 10.9 percent for the year overall.
There were record profits this year of 304 billion Australian dollars (242.18 billion U.S. dollars), according to the chief economist at the CBA, Craig James, who said that this has led to businesses seeking to hire more staff across the country.
"The profit data further explains why businesses are keen to employ more staff. Job ads lifted another 2 percent in August," James said.
"Last week, data indicated that businesses were investing again. And more importantly, they expect to keep on investing over the coming year. All the pieces of the puzzle are falling into shape - the economy is set to pick up pace."
