AdviserVoiceChinese inflation Archives - AdviserVoice https://www.adviservoice.com.au/tag/chinese-inflation/ Financial planner information & financial planner education/CPD - AdviserVoice Wed, 22 Jul 2026 20:20:18 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Largest jobs gains on record… apparently https://www.adviservoice.com.au/2014/09/largest-jobs-gains-record-apparently/ https://www.adviservoice.com.au/2014/09/largest-jobs-gains-record-apparently/#respond Thu, 11 Sep 2014 21:35:19 +0000 https://adviservoice.com.au/?p=32779 Labour force; Chinese inflation
  • Employment growth surpassed optimistic expectations.

    Employment growth surpassed optimistic expectations.

    Jobs gains: Employment rose by a record high 121,000 in August after falling by a revised 4,100 in July (previously reported as a 300 fall in jobs). Full-time jobs rose by 14,300 in August after rising by 15,400 in July. Part-time jobs rose by 106,700 in August after falling by 4,100 in July.

  • A total of 236,500 new jobs have been created in the first eight months of 2014 – the best start to a calendar year since 2005.
  • Jobless rate slides: The unemployment rate fell from 6.4 per cent to 6.1 per cent in August. The participation rate rose from 64.9 per cent to 65.2 per cent.
  • Hours worked was unchanged in August after falling by 1.0 per cent in July. Hours worked are up 0.6 per cent over the year.
  • Tame Chinese inflation: Producer prices fell by 1.2 per cent in the year to August (median forecast was for a 1.1 per cent decline). Consumer prices rose by 2.0 per cent over the year (median forecast 2.2 per cent).
  • In August, consumer prices rose by 0.2 per cent. Producer prices fell by 0.2 per cent.

What does it all mean?

  • Employment growth surpassed even our rather optimistic expectations. Part time jobs growth of over 106,000 jobs or a record total (part time plus full-time) 121,000 jobs in one month? Well it is hard to take this at face value, and no doubt there is some level of statistical discrepancy. But it does resonate with the lift in the employment landscape conditions over the past year. And more importantly rather than focusing on one month’s data the broader trend shows a similar picture.
  • Last year employers were working existing staff longer and there had been a lift in productivity, while it is now clear that employers are adding to the workforce – whether it is part time or full-time roles. In fact jobs growth has been solid with almost 127,000 full-time jobs having been created in the first eight months of 2014 – marking the best start to a calendar year in four years.
  • The one key positive out of the super-strong result is that it should ease concerns about the labour market. All the noise about the prior result – 12–year high unemployment rate in July- dampened consumer confidence. However this time round despite the lift in the participation rate – which suggests more people are looking for work – the unemployment rate eased back to 6.1 per cent. The latest result should help to ease some of those concerns. An improvement in confidence would certainly bode well for retail activity and broader economic growth.
  • Labour market conditions have certainly improved in recent months. Business conditions are healthy, profitability has improved and more importantly forward order books are starting to fill up. No doubt the business sector is feeling more comfortable hiring as can be seen by the ongoing lift in job advertisements. More people are looking for work and more people are finding work as well – a result that should increase household incomes.
  • The Reserve Bank would certainly be feeling a bit more comfortable. It’s all running pretty much to plan. Even the recent US dollar strength has resulted in the Aussie dollar falling to a six-month low. Clearly the Reserve Bank has no need to be moving rates in any direction at present. The earliest timing of the first rate hike is February next year, but it requires a further improvement in activity levels and a stronger lift in employment.
  • Chinese inflation remains benign and is certainly no threat to the broader Chinese economy. Consumer inflation is healthy without being excessive and business inflation is still contracting. More importantly the data in recent weeks suggests the Chinese economy has found a solid base and has lifted after a lacklustre start to the year. If growth doesn’t rebound Chinese authorities are certainly well placed to provide further stimulus.Focus will shift to the retail sales, industrial production and fixed asset investment figures due out on Saturday.

What do the figures show?

Labour force:

  • Employment rose by a record high 121,000 in August after falling by a revised 4,100 in July (previously reported as a 300 fall in jobs). Full-time jobs rose by 14,300 in August after rising by 15,400 in July. Part-time jobs rose by 106,700 in August after falling by 4,100 in July.
  • The unemployment rate fell from 6.4 per cent to 6.1 per cent in August. The participation rate rose from 64.9 per cent to 65.2 per cent.
  • The number of hours worked was unchanged in August after falling by 1.0 per cent in July. Hours worked are up 0.6 per cent over the year.
  • The annual employment growth rate rose from 0.9 per cent to 2.2 per cent in August. The working age population grew by 26,100 people in August and by 3441,700 over the year or 1.82 per cent.
  • Unemployment across states and territories: NSW 5.7 per cent (July 5.9 per cent); Victoria 6.8 per cent (7.0 per cent); Queensland 6.7 per cent (6.8 per cent); South Australia 5.9 per cent (7.2 per cent); Western Australia 5.0 per cent (5.2 per cent); Tasmania 7.1 per cent (7.6 per cent). Trend unemployment Northern Territory 4.8 per cent (4.6 per cent); ACT 4.6 per cent (4.3 per cent).
  • Jobs across states and territories: NSW +45,300; Victoria +26,100; Queensland +26,500; South Australia +16,800; Western Australia +9,600; Tasmania +3,800. Trend employment Northern Territory +200; ACT +700.

Chinese inflation data

  • The annual rate of consumer price inflation fell from 2.3 per cent in July to 2.0 per cent in August. The result was below forecasts for annual growth of 2.2 per cent. Over the month consumer prices rose by 0.2 per cent, mildly weaker than forecasts.
  • Food prices rose by 0.7 per cent in August after falling by 0.1 per cent in July with non-food prices down 0.1 per cent in August. Pork prices lifted by a much more sedate 0.1 per cent in August. Over the year to August, food prices rose by 3 per cent while non-food prices were up by 1.5 per cent.
  • Annual price growth: Clothing prices rose by 2.6 per cent in the year to August; tobacco & liquor prices fell 0.6 per cent annually; transport & communications rose 0.2 per cent annually; household equipment & maintenance prices were up 1.1 per cent annually; healthcare & personal products rose by 1.4 per cent annually; entertainment & educational rose 1.9 per cent annually.
  • Producer prices (business inflation) fell by 0.2 per cent in August. Producer prices in August were 1.2 per cent lower than a year ago. Economists had tipped a 1.1 per cent annual decline.
  • The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
  • If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • In the past, employment data has been volatile around turning points, but clearly the last eight months of jobs growth suggest an improvement in labour market conditions, despite the likely statistical discrepancies job creation. Hopefully the focus in the latest data will centre on the ongoing lift in employment from a broader perspective than just one month’s data.
  • RBA business liaisons have commented on the noticeable lift in business hiring intentions and it suggests labour market conditions are heading in the right direction. Employers are working existing staff harder but as profitability improves, management will feel more comfortable increasing head count.
  • Clearly the Reserve Bank has no need to be moving rates in any direction at present.

Why is the data important?

  • The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
  • If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications?

  • In the past, employment data has been volatile around turning points, but clearly the last eight months of jobs growth suggest an improvement in labour market conditions, despite the likely statistical discrepancies job creation. Hopefully the focus in the latest data will centre on the ongoing lift in employment from a broader perspective than just one month’s data.
  • RBA business liaisons have commented on the noticeable lift in business hiring intentions and it suggests labour market conditions are heading in the right direction. Employers are working existing staff harder but as profitability improves, management will feel more comfortable increasing head count.
  • Clearly the Reserve Bank has no need to be moving rates in any direction at present.
]]> Labour force; Chinese inflation
  • Employment growth surpassed optimistic expectations.

    Employment growth surpassed optimistic expectations.

    Jobs gains: Employment rose by a record high 121,000 in August after falling by a revised 4,100 in July (previously reported as a 300 fall in jobs). Full-time jobs rose by 14,300 in August after rising by 15,400 in July. Part-time jobs rose by 106,700 in August after falling by 4,100 in July.

  • A total of 236,500 new jobs have been created in the first eight months of 2014 – the best start to a calendar year since 2005.
  • Jobless rate slides: The unemployment rate fell from 6.4 per cent to 6.1 per cent in August. The participation rate rose from 64.9 per cent to 65.2 per cent.
  • Hours worked was unchanged in August after falling by 1.0 per cent in July. Hours worked are up 0.6 per cent over the year.
  • Tame Chinese inflation: Producer prices fell by 1.2 per cent in the year to August (median forecast was for a 1.1 per cent decline). Consumer prices rose by 2.0 per cent over the year (median forecast 2.2 per cent).
  • In August, consumer prices rose by 0.2 per cent. Producer prices fell by 0.2 per cent.

What does it all mean?

  • Employment growth surpassed even our rather optimistic expectations. Part time jobs growth of over 106,000 jobs or a record total (part time plus full-time) 121,000 jobs in one month? Well it is hard to take this at face value, and no doubt there is some level of statistical discrepancy. But it does resonate with the lift in the employment landscape conditions over the past year. And more importantly rather than focusing on one month’s data the broader trend shows a similar picture.
  • Last year employers were working existing staff longer and there had been a lift in productivity, while it is now clear that employers are adding to the workforce – whether it is part time or full-time roles. In fact jobs growth has been solid with almost 127,000 full-time jobs having been created in the first eight months of 2014 – marking the best start to a calendar year in four years.
  • The one key positive out of the super-strong result is that it should ease concerns about the labour market. All the noise about the prior result – 12–year high unemployment rate in July- dampened consumer confidence. However this time round despite the lift in the participation rate – which suggests more people are looking for work – the unemployment rate eased back to 6.1 per cent. The latest result should help to ease some of those concerns. An improvement in confidence would certainly bode well for retail activity and broader economic growth.
  • Labour market conditions have certainly improved in recent months. Business conditions are healthy, profitability has improved and more importantly forward order books are starting to fill up. No doubt the business sector is feeling more comfortable hiring as can be seen by the ongoing lift in job advertisements. More people are looking for work and more people are finding work as well – a result that should increase household incomes.
  • The Reserve Bank would certainly be feeling a bit more comfortable. It’s all running pretty much to plan. Even the recent US dollar strength has resulted in the Aussie dollar falling to a six-month low. Clearly the Reserve Bank has no need to be moving rates in any direction at present. The earliest timing of the first rate hike is February next year, but it requires a further improvement in activity levels and a stronger lift in employment.
  • Chinese inflation remains benign and is certainly no threat to the broader Chinese economy. Consumer inflation is healthy without being excessive and business inflation is still contracting. More importantly the data in recent weeks suggests the Chinese economy has found a solid base and has lifted after a lacklustre start to the year. If growth doesn’t rebound Chinese authorities are certainly well placed to provide further stimulus.Focus will shift to the retail sales, industrial production and fixed asset investment figures due out on Saturday.

What do the figures show?

Labour force:

  • Employment rose by a record high 121,000 in August after falling by a revised 4,100 in July (previously reported as a 300 fall in jobs). Full-time jobs rose by 14,300 in August after rising by 15,400 in July. Part-time jobs rose by 106,700 in August after falling by 4,100 in July.
  • The unemployment rate fell from 6.4 per cent to 6.1 per cent in August. The participation rate rose from 64.9 per cent to 65.2 per cent.
  • The number of hours worked was unchanged in August after falling by 1.0 per cent in July. Hours worked are up 0.6 per cent over the year.
  • The annual employment growth rate rose from 0.9 per cent to 2.2 per cent in August. The working age population grew by 26,100 people in August and by 3441,700 over the year or 1.82 per cent.
  • Unemployment across states and territories: NSW 5.7 per cent (July 5.9 per cent); Victoria 6.8 per cent (7.0 per cent); Queensland 6.7 per cent (6.8 per cent); South Australia 5.9 per cent (7.2 per cent); Western Australia 5.0 per cent (5.2 per cent); Tasmania 7.1 per cent (7.6 per cent). Trend unemployment Northern Territory 4.8 per cent (4.6 per cent); ACT 4.6 per cent (4.3 per cent).
  • Jobs across states and territories: NSW +45,300; Victoria +26,100; Queensland +26,500; South Australia +16,800; Western Australia +9,600; Tasmania +3,800. Trend employment Northern Territory +200; ACT +700.

Chinese inflation data

  • The annual rate of consumer price inflation fell from 2.3 per cent in July to 2.0 per cent in August. The result was below forecasts for annual growth of 2.2 per cent. Over the month consumer prices rose by 0.2 per cent, mildly weaker than forecasts.
  • Food prices rose by 0.7 per cent in August after falling by 0.1 per cent in July with non-food prices down 0.1 per cent in August. Pork prices lifted by a much more sedate 0.1 per cent in August. Over the year to August, food prices rose by 3 per cent while non-food prices were up by 1.5 per cent.
  • Annual price growth: Clothing prices rose by 2.6 per cent in the year to August; tobacco & liquor prices fell 0.6 per cent annually; transport & communications rose 0.2 per cent annually; household equipment & maintenance prices were up 1.1 per cent annually; healthcare & personal products rose by 1.4 per cent annually; entertainment & educational rose 1.9 per cent annually.
  • Producer prices (business inflation) fell by 0.2 per cent in August. Producer prices in August were 1.2 per cent lower than a year ago. Economists had tipped a 1.1 per cent annual decline.
  • The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
  • If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • In the past, employment data has been volatile around turning points, but clearly the last eight months of jobs growth suggest an improvement in labour market conditions, despite the likely statistical discrepancies job creation. Hopefully the focus in the latest data will centre on the ongoing lift in employment from a broader perspective than just one month’s data.
  • RBA business liaisons have commented on the noticeable lift in business hiring intentions and it suggests labour market conditions are heading in the right direction. Employers are working existing staff harder but as profitability improves, management will feel more comfortable increasing head count.
  • Clearly the Reserve Bank has no need to be moving rates in any direction at present.

Why is the data important?

  • The Labour Force estimates are derived from a monthly survey conducted by the Bureau of Statistics. The population survey is based on a multi-stage area sample of private dwellings (currently about 22,800 houses, flats, etc.) and a sample of non-private dwellings (hotels, motels, etc.). The survey covers about 0.24 per cent of the population of Australia and includes all people over 15 years of age, except defence personnel.
  • If more people are employed, then there is greater spending power in the economy. But at the same time companies may adjust the work hours of employees. If employees work less hours, and therefore get paid less, then spending power in the economy is reduced.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications?

  • In the past, employment data has been volatile around turning points, but clearly the last eight months of jobs growth suggest an improvement in labour market conditions, despite the likely statistical discrepancies job creation. Hopefully the focus in the latest data will centre on the ongoing lift in employment from a broader perspective than just one month’s data.
  • RBA business liaisons have commented on the noticeable lift in business hiring intentions and it suggests labour market conditions are heading in the right direction. Employers are working existing staff harder but as profitability improves, management will feel more comfortable increasing head count.
  • Clearly the Reserve Bank has no need to be moving rates in any direction at present.

The post Largest jobs gains on record… apparently appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2014/09/largest-jobs-gains-record-apparently/feed/ 0 New low for first-time buyers; Confident businesses https://www.adviservoice.com.au/2014/06/new-low-first-time-buyers-confident-businesses/ https://www.adviservoice.com.au/2014/06/new-low-first-time-buyers-confident-businesses/#respond Tue, 10 Jun 2014 21:40:42 +0000 https://adviservoice.com.au/?p=30528

Latest economic data; Chinese inflation; Weekly Petrol

  • The number of new owner-occupier housing loans was largely unchanged in April but the share of first-time buyers in the market equalled the record low at 12.3 per cent of all loans. The value of investor home loans rose by 2.3 per cent to a record $11 billion in April.
  • Business conditions and confidence: The NAB business confidence index rose from +6.5 points to +6.9 points in May. The business conditions index eased from +0.2 points to -0.7 points. The survey was conducted from May 26 to June 3.
  • Petrol prices drop: According to the Australian Institute of Petroleum, the national average Australian price of petrol fell by 4.0 cents per litre to 151.7 cents a litre in the week to June 6. The petrol price has trended sideways over 2014.
  • Hiring slips: Job advertisements fell by 5.6 per cent in May – the first fall in five months.
  • Tame Chinese inflation: Producer prices fell by 1.4 per cent in the year to May (median forecast was for a 1.5 per cent decline). Consumer prices rose by 2.5 per cent over the year (median forecast 2.4 per cent).

What does it all mean?

  • In contrast to the supposed angst of consumers concerning the latest Federal Budget, the business sector has taken it all in its stride. Confidence has actually edged up slightly over the past month. And now with the Budget retreating from media headlines, more focus can be placed on Australia’s good economic circumstances. Consumer confidence should lift as more realise the economy is in solid shape and interest rates are going nowhere. And more confident consumers should lead to better operating conditions for businesses.
  • The national petrol price has lost relevance as an indicator of petrol price trends due to the vagaries of the discounting cycle. One week the price is up 4-5 cents, the next week it’s down 4-5 cents. The best indicator of trends is the wholesale price which has broadly trended sideways over 2014. There are no indications that petrol prices are set to move sharply higher or lower in the short term.
  • At face value it appears that some of the froth has been removed from the housing market – a welcome development for all concerned. We say ‘face value’ because April readings are notoriously difficult to read given the different timing of Easter holidays. This year Easter holidays were close to ANZAC Day, leading to more people taking extended holiday breaks.
  • The Chinese inflation data suggests that the economy has stabilised and in fact seems to be gaining a little strength. Inflation readings were a little stronger than expected, backing up the strong export result in the May figures released on Sunday.

What do the figures show?

National Australia Bank Business Survey:

  • The NAB business confidence index rose from +6.5 points to +6.9 points in May. The business conditions index eased from +0.2 points to -0.7 points.
  • The index of trading conditions weakened from +3.1 points to +1.6 points; employment weakened from +0.2 points to -0.1 points; profitability weakened from -1.7 points to -2.2 points; but forward orders improved from -5.5 points to 0.0 points.
  • Inflationary pressures generally eased in May. The monthly reading of labour costs rose at a 0.6 per cent quarterly rate in May after a 0.6 per cent rise in April. Purchase costs rose at a 0.4 per cent quarterly rate in May, after a 0.6 per cent rise in April. Final product prices rose by 0.1 per cent after a 0.2 per cent rise in April. Retail prices were unchanged in May, after rising at a 0.1 per cent quarterly pace in April.
  • Capacity utilisation was unchanged at 80.3 per cent in May, below the long-term average of 81.2 per cent.
  • The proportion of firms reporting that they did not require credit eased from around 70 per cent in April to around 45 per cent in May.

Housing Finance:

  • The number of new owner-occupier housing loans (commitments) was flat in April (actually, up by just 5 loans to 52,109). Excluding the refinancing of dwellings, loans were down by 0.3 per cent in April.
  • The number of loans by owner-occupiers for the construction of homes fell by 1.1 per cent in April – only the first decline on nine months. The value of construction loans fell by 3.8 per cent in April after a 4.4 per cent increase in March.
  • The number of loans by owner-occupiers to buy newly-erected dwellings fell by 1.5 per cent in April but the value of loans rose by 0.3 per cent.
  • The number of loans by owner-occupiers for the purchase of established dwellings excluding refinancing was flat in April and the value of loans rose by 2.4 per cent in April after falling by 2.1 per cent in March.
  • The number of refinancing transactions by owner-occupiers rose by 0.6 per cent while the value of transactions also rose by 1.6 per cent.
  • The value of new housing commitments (owner occupier and investment) rose by 1.7 per cent in April with owner-occupier loans up 1.4 per cent while investment loans rose by 2.3 per cent to record highs.
  • The value of loans by owner-occupiers and investors to build new homes rose from $2.42 billion to $2.56 billion in April but loans were short of the record high of $2.78 billion in February.
  • The proportion of first-time buyers in the home loan market eased from 12.6 per cent to 12.3 per cent in April – equalling the record low set in November 2013 and well below the long-term average of 20.0 per cent. Fixed rate loans rose from 14.9 per cent to 15.2 per cent of all loans in April. And the average home loan across Australia stood at $323,400 in April, up 7.2 per cent on a year ago.

Job Advertisements

  • Job advertisements fell by 5.6 per cent in May – the first fall in five months. While newspaper advertisements rose by 7.2 per cent in the month, internet ads fell by 6.0 per cent. In trend terms, ads rose by 0.5 per cent in May, the seventh straight gain.

Chinese inflation data

  • The annual rate of consumer price inflation rose from 1.8 per cent in April to a four-month high of 2.5 per cent in May, just above forecasts centred on annual growth of 2.4 per cent. Over the month consumer prices rose by 0.1 per cent after falling 0.3 per cent in April.
  • Food prices rose by 0.2 per cent in May with non-food prices up 0.1 per cent. Over the year to May, food prices rose by 4.1 per cent while non-food prices were up by 1.7 per cent.
  • Food: Prices of fresh vegetables fell by 8.7 per cent in May with fruit up 2.1 per cent. Meat & poultry prices rose by 2.7 per cent with pork up 5.6 per cent, while beef prices were flat and lamb prices eased by 0.3 per cent.
  • Other prices: Clothing prices rose by 0.3 per cent in May (2.5 per cent annual); tobacco & liquor prices were down 0.1 per cent (down 0.6 per cent annual); transport & communications rose 0.1 per cent (up 0.6 per cent annual); household equipment & maintenance prices were up 0.1 per cent (1.2 per cent annual); healthcare & personal products rose by 0.1 per cent (1.2 per cent annual); entertainment & educational fell by 0.1 per cent (up 2.1 per cent annual); living costs (including rents, utilities) were flat (up 2.3 per cent annual).
  • Producer prices (business inflation) fell by 0.1 per cent in May – the smallest decline in four months. Producer prices in May were 1.4 per cent lower than a year ago, again the smallest annual decline in five months. Economists had tipped a 1.5 per cent annual decline.
  • Mining producer prices fell by 1.0 per cent in May to be down 4.9 per cent over the year. Raw material prices fell 0.1 per cent in May (down 2.0 per cent annual); machined goods were flat (down 1.6 per cent annual). Over the year prices fell most in coal mining (down 11.7 per cent) but rose most in gas production (up 5.8 per cent).

Petrol prices

  • According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 4.0 cents a litre to 151.7 c/l in the week to June 8. The metropolitan price fell by 5.5 c/l to 150.1 c/l, while the regional average price fell by 0.8 cents per litre to 155.1 c/l.
  • Average unleaded petrol prices across states and territories over the past week were: Sydney (down by 8.2 cents to 147.1 c/l), Melbourne (down by 8.8 cents to 146.8 c/l), Brisbane (down by 9.0 cents to 150.7 c/l), Adelaide (up by 9.3 cents to 157.2 c/l), Perth (up by 0.6 cents to 153.5 c/l), Darwin (unchanged at 173.0 c/l), Canberra (unchanged at 157.3 c/l) and Hobart (down by 0.1 cents to 160.7 c/l).
  • Today, the national average wholesale (terminal gate) unleaded petrol price stands at a 13-day low of 143.3 c/l, down around 2.1 cents over the week. Petrol is trading below wholesale prices at Sydney pumps.
  • Last week the key Singapore gasoline price fell by US$2.55 or 2.1 per cent to US$120.45 a barrel. Yesterday the Singapore gasoline price fell further to a 5-week low of US$119.30 a barrel. In Australian dollar terms the Singapore gasoline price fell by $2.92 a barrel or 2.2 per cent last week to $129.07 a barrel or 81.18 cents a litre.
  • Figures from MotorMouth show that petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth peaked (hit the high point in the cycle over the last weekend). Prices should ease over the coming week and head towards the low point early next week.
  • The monthly National Australia Bank business survey is valuable in providing a timely reading on the health of Corporate Australia. Key indicators of business conditions such as orders, employment, profitability and capacity use are covered together with a gauge on confidence levels.
  • Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
  • Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
  • The monthly Job Advertisements release is a leading employment indicator. Employers only seek additional staff if business activity is strong, and more importantly, if they expect that conditions will remain favourable in coming months. It takes around 5-6 months for the new staff to be added to the payrolls. But a fall in job advertisements would have a more immediate impact on monthly employment estimates.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • The housing market remains in good shape. But Generation Y is choosing to rent rather than buy, relying on the investments of Generation X and Baby Boomers to provide the new rental housing stock.
  • Anecdotally, some Generation Y are buying homes and choosing to let them while at the same time leasing properties themselves.
  • The Reserve Bank doesn’t need to be in a rush to lift interest rates.
  • The Chinese data is encouraging, pointing to stabilisation of the economy. Producer prices are still falling, but the rate of decline has improved. Authorities may have a little more confidence to provide targeted stimulus to the economy.

What is the importance of the economic data?

  •  The monthly National Australia Bank business survey is valuable in providing a timely reading on the health of Corporate Australia. Key indicators of business conditions such as orders, employment, profitability and capacity use are covered together with a gauge on confidence levels.
  • Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
  • Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
  • The monthly Job Advertisements release is a leading employment indicator. Employers only seek additional staff if business activity is strong, and more importantly, if they expect that conditions will remain favourable in coming months. It takes around 5-6 months for the new staff to be added to the payrolls. But a fall in job advertisements would have a more immediate impact on monthly employment estimates.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications for interest rates and investors?

  • The housing market remains in good shape. But Generation Y is choosing to rent rather than buy, relying on the investments of Generation X and Baby Boomers to provide the new rental housing stock.
  • Anecdotally, some Generation Y are buying homes and choosing to let them while at the same time leasing properties themselves.
  • The Reserve Bank doesn’t need to be in a rush to lift interest rates.
  • The Chinese data is encouraging, pointing to stabilisation of the economy. Producer prices are still falling, but the rate of decline has improved. Authorities may have a little more confidence to provide targeted stimulus to the economy.
]]>

Latest economic data; Chinese inflation; Weekly Petrol

  • The number of new owner-occupier housing loans was largely unchanged in April but the share of first-time buyers in the market equalled the record low at 12.3 per cent of all loans. The value of investor home loans rose by 2.3 per cent to a record $11 billion in April.
  • Business conditions and confidence: The NAB business confidence index rose from +6.5 points to +6.9 points in May. The business conditions index eased from +0.2 points to -0.7 points. The survey was conducted from May 26 to June 3.
  • Petrol prices drop: According to the Australian Institute of Petroleum, the national average Australian price of petrol fell by 4.0 cents per litre to 151.7 cents a litre in the week to June 6. The petrol price has trended sideways over 2014.
  • Hiring slips: Job advertisements fell by 5.6 per cent in May – the first fall in five months.
  • Tame Chinese inflation: Producer prices fell by 1.4 per cent in the year to May (median forecast was for a 1.5 per cent decline). Consumer prices rose by 2.5 per cent over the year (median forecast 2.4 per cent).

What does it all mean?

  • In contrast to the supposed angst of consumers concerning the latest Federal Budget, the business sector has taken it all in its stride. Confidence has actually edged up slightly over the past month. And now with the Budget retreating from media headlines, more focus can be placed on Australia’s good economic circumstances. Consumer confidence should lift as more realise the economy is in solid shape and interest rates are going nowhere. And more confident consumers should lead to better operating conditions for businesses.
  • The national petrol price has lost relevance as an indicator of petrol price trends due to the vagaries of the discounting cycle. One week the price is up 4-5 cents, the next week it’s down 4-5 cents. The best indicator of trends is the wholesale price which has broadly trended sideways over 2014. There are no indications that petrol prices are set to move sharply higher or lower in the short term.
  • At face value it appears that some of the froth has been removed from the housing market – a welcome development for all concerned. We say ‘face value’ because April readings are notoriously difficult to read given the different timing of Easter holidays. This year Easter holidays were close to ANZAC Day, leading to more people taking extended holiday breaks.
  • The Chinese inflation data suggests that the economy has stabilised and in fact seems to be gaining a little strength. Inflation readings were a little stronger than expected, backing up the strong export result in the May figures released on Sunday.

What do the figures show?

National Australia Bank Business Survey:

  • The NAB business confidence index rose from +6.5 points to +6.9 points in May. The business conditions index eased from +0.2 points to -0.7 points.
  • The index of trading conditions weakened from +3.1 points to +1.6 points; employment weakened from +0.2 points to -0.1 points; profitability weakened from -1.7 points to -2.2 points; but forward orders improved from -5.5 points to 0.0 points.
  • Inflationary pressures generally eased in May. The monthly reading of labour costs rose at a 0.6 per cent quarterly rate in May after a 0.6 per cent rise in April. Purchase costs rose at a 0.4 per cent quarterly rate in May, after a 0.6 per cent rise in April. Final product prices rose by 0.1 per cent after a 0.2 per cent rise in April. Retail prices were unchanged in May, after rising at a 0.1 per cent quarterly pace in April.
  • Capacity utilisation was unchanged at 80.3 per cent in May, below the long-term average of 81.2 per cent.
  • The proportion of firms reporting that they did not require credit eased from around 70 per cent in April to around 45 per cent in May.

Housing Finance:

  • The number of new owner-occupier housing loans (commitments) was flat in April (actually, up by just 5 loans to 52,109). Excluding the refinancing of dwellings, loans were down by 0.3 per cent in April.
  • The number of loans by owner-occupiers for the construction of homes fell by 1.1 per cent in April – only the first decline on nine months. The value of construction loans fell by 3.8 per cent in April after a 4.4 per cent increase in March.
  • The number of loans by owner-occupiers to buy newly-erected dwellings fell by 1.5 per cent in April but the value of loans rose by 0.3 per cent.
  • The number of loans by owner-occupiers for the purchase of established dwellings excluding refinancing was flat in April and the value of loans rose by 2.4 per cent in April after falling by 2.1 per cent in March.
  • The number of refinancing transactions by owner-occupiers rose by 0.6 per cent while the value of transactions also rose by 1.6 per cent.
  • The value of new housing commitments (owner occupier and investment) rose by 1.7 per cent in April with owner-occupier loans up 1.4 per cent while investment loans rose by 2.3 per cent to record highs.
  • The value of loans by owner-occupiers and investors to build new homes rose from $2.42 billion to $2.56 billion in April but loans were short of the record high of $2.78 billion in February.
  • The proportion of first-time buyers in the home loan market eased from 12.6 per cent to 12.3 per cent in April – equalling the record low set in November 2013 and well below the long-term average of 20.0 per cent. Fixed rate loans rose from 14.9 per cent to 15.2 per cent of all loans in April. And the average home loan across Australia stood at $323,400 in April, up 7.2 per cent on a year ago.

Job Advertisements

  • Job advertisements fell by 5.6 per cent in May – the first fall in five months. While newspaper advertisements rose by 7.2 per cent in the month, internet ads fell by 6.0 per cent. In trend terms, ads rose by 0.5 per cent in May, the seventh straight gain.

Chinese inflation data

  • The annual rate of consumer price inflation rose from 1.8 per cent in April to a four-month high of 2.5 per cent in May, just above forecasts centred on annual growth of 2.4 per cent. Over the month consumer prices rose by 0.1 per cent after falling 0.3 per cent in April.
  • Food prices rose by 0.2 per cent in May with non-food prices up 0.1 per cent. Over the year to May, food prices rose by 4.1 per cent while non-food prices were up by 1.7 per cent.
  • Food: Prices of fresh vegetables fell by 8.7 per cent in May with fruit up 2.1 per cent. Meat & poultry prices rose by 2.7 per cent with pork up 5.6 per cent, while beef prices were flat and lamb prices eased by 0.3 per cent.
  • Other prices: Clothing prices rose by 0.3 per cent in May (2.5 per cent annual); tobacco & liquor prices were down 0.1 per cent (down 0.6 per cent annual); transport & communications rose 0.1 per cent (up 0.6 per cent annual); household equipment & maintenance prices were up 0.1 per cent (1.2 per cent annual); healthcare & personal products rose by 0.1 per cent (1.2 per cent annual); entertainment & educational fell by 0.1 per cent (up 2.1 per cent annual); living costs (including rents, utilities) were flat (up 2.3 per cent annual).
  • Producer prices (business inflation) fell by 0.1 per cent in May – the smallest decline in four months. Producer prices in May were 1.4 per cent lower than a year ago, again the smallest annual decline in five months. Economists had tipped a 1.5 per cent annual decline.
  • Mining producer prices fell by 1.0 per cent in May to be down 4.9 per cent over the year. Raw material prices fell 0.1 per cent in May (down 2.0 per cent annual); machined goods were flat (down 1.6 per cent annual). Over the year prices fell most in coal mining (down 11.7 per cent) but rose most in gas production (up 5.8 per cent).

Petrol prices

  • According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 4.0 cents a litre to 151.7 c/l in the week to June 8. The metropolitan price fell by 5.5 c/l to 150.1 c/l, while the regional average price fell by 0.8 cents per litre to 155.1 c/l.
  • Average unleaded petrol prices across states and territories over the past week were: Sydney (down by 8.2 cents to 147.1 c/l), Melbourne (down by 8.8 cents to 146.8 c/l), Brisbane (down by 9.0 cents to 150.7 c/l), Adelaide (up by 9.3 cents to 157.2 c/l), Perth (up by 0.6 cents to 153.5 c/l), Darwin (unchanged at 173.0 c/l), Canberra (unchanged at 157.3 c/l) and Hobart (down by 0.1 cents to 160.7 c/l).
  • Today, the national average wholesale (terminal gate) unleaded petrol price stands at a 13-day low of 143.3 c/l, down around 2.1 cents over the week. Petrol is trading below wholesale prices at Sydney pumps.
  • Last week the key Singapore gasoline price fell by US$2.55 or 2.1 per cent to US$120.45 a barrel. Yesterday the Singapore gasoline price fell further to a 5-week low of US$119.30 a barrel. In Australian dollar terms the Singapore gasoline price fell by $2.92 a barrel or 2.2 per cent last week to $129.07 a barrel or 81.18 cents a litre.
  • Figures from MotorMouth show that petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth peaked (hit the high point in the cycle over the last weekend). Prices should ease over the coming week and head towards the low point early next week.
  • The monthly National Australia Bank business survey is valuable in providing a timely reading on the health of Corporate Australia. Key indicators of business conditions such as orders, employment, profitability and capacity use are covered together with a gauge on confidence levels.
  • Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
  • Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
  • The monthly Job Advertisements release is a leading employment indicator. Employers only seek additional staff if business activity is strong, and more importantly, if they expect that conditions will remain favourable in coming months. It takes around 5-6 months for the new staff to be added to the payrolls. But a fall in job advertisements would have a more immediate impact on monthly employment estimates.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • The housing market remains in good shape. But Generation Y is choosing to rent rather than buy, relying on the investments of Generation X and Baby Boomers to provide the new rental housing stock.
  • Anecdotally, some Generation Y are buying homes and choosing to let them while at the same time leasing properties themselves.
  • The Reserve Bank doesn’t need to be in a rush to lift interest rates.
  • The Chinese data is encouraging, pointing to stabilisation of the economy. Producer prices are still falling, but the rate of decline has improved. Authorities may have a little more confidence to provide targeted stimulus to the economy.

What is the importance of the economic data?

  •  The monthly National Australia Bank business survey is valuable in providing a timely reading on the health of Corporate Australia. Key indicators of business conditions such as orders, employment, profitability and capacity use are covered together with a gauge on confidence levels.
  • Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
  • Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory’s metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
  • The monthly Job Advertisements release is a leading employment indicator. Employers only seek additional staff if business activity is strong, and more importantly, if they expect that conditions will remain favourable in coming months. It takes around 5-6 months for the new staff to be added to the payrolls. But a fall in job advertisements would have a more immediate impact on monthly employment estimates.
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications for interest rates and investors?

  • The housing market remains in good shape. But Generation Y is choosing to rent rather than buy, relying on the investments of Generation X and Baby Boomers to provide the new rental housing stock.
  • Anecdotally, some Generation Y are buying homes and choosing to let them while at the same time leasing properties themselves.
  • The Reserve Bank doesn’t need to be in a rush to lift interest rates.
  • The Chinese data is encouraging, pointing to stabilisation of the economy. Producer prices are still falling, but the rate of decline has improved. Authorities may have a little more confidence to provide targeted stimulus to the economy.

The post New low for first-time buyers; Confident businesses appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2014/06/new-low-first-time-buyers-confident-businesses/feed/ 0 Benign Chinese inflation placates investors https://www.adviservoice.com.au/2014/02/benign-chinese-inflation-placates-investors/ https://www.adviservoice.com.au/2014/02/benign-chinese-inflation-placates-investors/#respond Sun, 16 Feb 2014 20:40:00 +0000 https://adviservoice.com.au/?p=28199

Chinese inflation data

  • Chinese annual inflation: Producer prices fell by 1.6 per cent in the year to January (median forecast was for 1.7 per cent decline). Consumer prices rose by 2.5 per cent over the year (median forecast 2.3 per cent).
  • Seasonal increase in food prices: In January, consumer prices rose by 1.0 per cent – the biggest increase in 11 months. Food prices rose 2.4 per cent in January ahead of Lunar New Year holiday celebrations while non-food prices rose by 0.3 per cent.

What does it all mean?

  • There were few surprises in the latest Chinese inflation data. Producer prices continue to fall, reflecting over-supply in many industries. But annual consumer inflation was steady in January with higher food prices balanced by benign pressures for other goods and services.
  • The benign Chinese inflation data removes another potential source of concern for investors. So investors can strike it off the worry list. The other good news this week has been the ‘steady as you go’ testimony from the new US Federal Reserve chair, Janet Yellen; a lift in the US federal debt limit; and better-than-expected growth in Chinese trade data.
  • The Aussie dollar should remain in a US89-91 cent range in the short term while the absence of bad global economic news will support the Aussie sharemarket in a 5,200-5,400 point range.

What do the figures show?

Chinese inflation data

  • The annual rate of consumer price inflation was steady at 2.5 per cent in January, above forecasts for a result near 2.3 per cent. Over the month consumer prices rose by 1.0 per cent, above forecasts for a 0.7 per cent lift in prices.
  • Food prices rose by 2.4 per cent in January ahead of the Lunar New Year holiday with non-food prices up by 0.3 per cent. Over the year to January, food prices rose by 3.7 per cent while non-food prices were up by 1.9 per cent (11 month high).
  • Food: Prices of fresh vegetables rose by 12.1 per cent in January with fruit up 11.0 per cent. Meat & poultry prices were unchanged with pork down 1.0 per cent (higher pig numbers), beef up 1.7 per cent and lamb up 1.3 per cent.
  • Other prices: Clothing prices fell 0.5 per cent in January; tobacco & liquor fell 0.3 per cent; transport & communications rose 0.4 per cent; household equipment & maintenance rose by 0.4 per cent; healthcare & personal products rose by 0.3 per cent; entertainment & educational rose by 1.0 per cent (travel up 5.5 per cent or 14.9 per cent annual); living costs (including rents, utilities) rose by 0.2 per cent.
  • Producer prices (business inflation) fell by 0.1 per cent in January – the first fall in six months. Producer prices in November were 1.6 per cent lower than a year ago, the biggest annual decline in five months. Economists had tipped a 1.7 per cent annual decline.
  • Mining producer prices rose by 0.4 per cent in January but were down 4.0 per cent over the year. Raw material prices were unchanged in January (down 2.5 per cent annual); machined goods fell 0.1 per cent in January (down 1.7 per cent annual). Over the year prices fell most in coal mining (down 9.4 per cent) but rose most in gas production (up 5.1 per cent).
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • Chinese exports & imports are growing, pointing to a healthy economy, while inflation is contained. The easing in food inflation is encouraging for Chinese policymakers but the slight lift in core inflation is not a concern. There are few sources of angst for Aussie investors at present.

What is the importance of the economic data?

  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications for interest rates and investors?

  • Chinese exports & imports are growing, pointing to a healthy economy, while inflation is contained. The easing in food inflation is encouraging for Chinese policymakers but the slight lift in core inflation is not a concern. There are few sources of angst for Aussie investors at present.
]]>

Chinese inflation data

  • Chinese annual inflation: Producer prices fell by 1.6 per cent in the year to January (median forecast was for 1.7 per cent decline). Consumer prices rose by 2.5 per cent over the year (median forecast 2.3 per cent).
  • Seasonal increase in food prices: In January, consumer prices rose by 1.0 per cent – the biggest increase in 11 months. Food prices rose 2.4 per cent in January ahead of Lunar New Year holiday celebrations while non-food prices rose by 0.3 per cent.

What does it all mean?

  • There were few surprises in the latest Chinese inflation data. Producer prices continue to fall, reflecting over-supply in many industries. But annual consumer inflation was steady in January with higher food prices balanced by benign pressures for other goods and services.
  • The benign Chinese inflation data removes another potential source of concern for investors. So investors can strike it off the worry list. The other good news this week has been the ‘steady as you go’ testimony from the new US Federal Reserve chair, Janet Yellen; a lift in the US federal debt limit; and better-than-expected growth in Chinese trade data.
  • The Aussie dollar should remain in a US89-91 cent range in the short term while the absence of bad global economic news will support the Aussie sharemarket in a 5,200-5,400 point range.

What do the figures show?

Chinese inflation data

  • The annual rate of consumer price inflation was steady at 2.5 per cent in January, above forecasts for a result near 2.3 per cent. Over the month consumer prices rose by 1.0 per cent, above forecasts for a 0.7 per cent lift in prices.
  • Food prices rose by 2.4 per cent in January ahead of the Lunar New Year holiday with non-food prices up by 0.3 per cent. Over the year to January, food prices rose by 3.7 per cent while non-food prices were up by 1.9 per cent (11 month high).
  • Food: Prices of fresh vegetables rose by 12.1 per cent in January with fruit up 11.0 per cent. Meat & poultry prices were unchanged with pork down 1.0 per cent (higher pig numbers), beef up 1.7 per cent and lamb up 1.3 per cent.
  • Other prices: Clothing prices fell 0.5 per cent in January; tobacco & liquor fell 0.3 per cent; transport & communications rose 0.4 per cent; household equipment & maintenance rose by 0.4 per cent; healthcare & personal products rose by 0.3 per cent; entertainment & educational rose by 1.0 per cent (travel up 5.5 per cent or 14.9 per cent annual); living costs (including rents, utilities) rose by 0.2 per cent.
  • Producer prices (business inflation) fell by 0.1 per cent in January – the first fall in six months. Producer prices in November were 1.6 per cent lower than a year ago, the biggest annual decline in five months. Economists had tipped a 1.7 per cent annual decline.
  • Mining producer prices rose by 0.4 per cent in January but were down 4.0 per cent over the year. Raw material prices were unchanged in January (down 2.5 per cent annual); machined goods fell 0.1 per cent in January (down 1.7 per cent annual). Over the year prices fell most in coal mining (down 9.4 per cent) but rose most in gas production (up 5.1 per cent).
  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
  • Chinese exports & imports are growing, pointing to a healthy economy, while inflation is contained. The easing in food inflation is encouraging for Chinese policymakers but the slight lift in core inflation is not a concern. There are few sources of angst for Aussie investors at present.

What is the importance of the economic data?

  • China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 16th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.

What are the implications for interest rates and investors?

  • Chinese exports & imports are growing, pointing to a healthy economy, while inflation is contained. The easing in food inflation is encouraging for Chinese policymakers but the slight lift in core inflation is not a concern. There are few sources of angst for Aussie investors at present.

The post Benign Chinese inflation placates investors appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2014/02/benign-chinese-inflation-placates-investors/feed/ 0