Australia’s business inventories fell 0.2% quarter-on-quarter in the second quarter of 2026, reversing an upwardly revised 0.7% increase in the previous three-month period. The decline was driven mainly by sharp drawdowns in mining inventories (-4.8% vs 5.8% in Q1) and electricity, gas, water and waste services (-13.1% vs 6.6%). Inventory growth also slowed in accommodation and food services (3.5% vs 4.5%). In contrast, retail trade inventories returned to expansion (1.0% vs -1.6%), while wholesale trade stocks rose at a faster pace (1.7% vs 1.2%). In addition, manufacturing inventories declined at a slower pace (-0.9% vs -1.1%). On a yearly basis, business inventories fell 0.4%, slipping further from a downwardly revised 0.2% decline in Q1 2026.