AUSTRALIA DATA: Narrow Rise In Construction Work
Q2 the real value of construction work done rose 3% q/q & 4.8% y/y, highest since Q4 2023 and , stronger than expected, after -0.3% q/q & 3.0% y/y. The rise was driven by engineering work with the building components lacklustre. Q2 GDP is released September 3 with private capex data Thursday, inventories September 1 and net exports and public demand contributions September 2.
Australia real value of construction work done y/y%
- The rise in construction was not broad based with only NT, ACT, SA and Tasmania recording quarterly increases and the NT rising 344.8% q/q.
- Engineering work rose 6.1% q/q to be up 8.5% y/y. This was predominantly done by the private sector leaving total private construction up 4.3% q/q & 6.6% y/y after 3.1% y/y.
- Building increased 0.2% q/q to be up 1.6% y/y with residential +0.1% & 5.3% y/y and non-residential +0.3% & -4.0%. New houses constructed fell 1.6% q/q to be up 2.3% y/y down from Q1’s 6.5% y/y.
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CHINA PRESS: Industrial Profits Fall In June
China's industrial profits fell 4.3% y/y in June, following May’s 9.1% drop, while first-half profits decreased 1.8%, widening from the 1.1% decline in the first five months, China Securities Journal reported, citing data by National Bureau of Statistics on Sunday. Manufacturing profits rose 1.4% in June, reversing May’s decline of 4.1%, after promotional events accelerated car sales growth and boosted equipment manufacturing demand.
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China needs further countercyclical policies in H2 to achieve the annual economic growth target, given pressure from tariffs, real estate and limited fiscal resources, according to a Q2 report by the China Finance 40 Forum (CF40). Authorities should fully utilise the funds transferred into the public budget to achieve the annual growth target for broad fiscal expenditure, as well as consider issuing an additional CNY2.3 trillion of government bonds, the report said. According to the current plan, CNY7.6 trillion can be issued from June to December, a lower amount compared to last year, the report noted.
CHINA PRESS: PBOC To Keep Liquidity Ample
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