Finance profits back on track
Yesterday's national accounts provide another view of the profits of the financial sector, and which, after the interregnum created by the credit shock, are back on track.Finance and insurance produced value-added of $31 billion in the June 2010 quarter and measured on a trend basis.Industry value-added was around $30 billion each quarter in 2007 before the GFC intervened and trimmed profits, though only by up to $2 billion.The bounce back in profits makes the financial sector one of four that are the most noteworthy contributors to the lift in GDP over the last year, alongside professional services and construction.Manufacturing - and not mining, perhaps surprisingly - is the industry that has contributed most to GDP growth over the last year.As it stands, GDP growth for the June 2010 quarter surprised on the high side, coming in at 1.2 per cent for the quarter, and rising 0.9 per cent on a trend basis.