Australia’s business inventories edged down 0.1% qoq in Q4 2025, easing from a marginally revised 0.8% drop in the previous period. It marked a second consecutive quarterly decline, though the pace of contraction slowed notably, suggesting firms may be adjusting stock levels more cautiously amid softer demand and elevated financing costs. By sector, inventories fell 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 sector (-3.0% vs -1.3%). In contrast, stocks rebounded at miners (0.7% vs -4.7%) and rose further at electricity providers (3.7% vs 2.3%), partly reflecting project-related activity and energy demand. On an annual basis, business inventories were flat, following a 0.2% increase in Q3.