29 March 2024
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In the coming week, there is a paucity of economic indicators. The highlight is the business investment data on Thursday.

Australia: Spotlight on investment data

Craig James
21 February 2020

On Tuesday

The week kicks off on Tuesday with ANZ and Roy Morgan issuing the consumer sentiment index for the week ended February 23. Consumers feel OK about their finances but are more concerned with the short and longer term economic outlook.

On Wednesday

On Wednesday the Australian Bureau of Statistics (ABS) releases the “Construction Work Done” report. The report is important as the data on residential work is an input into the economic growth calculations. In the September quarter, construction fell by 0.4%. While residential work fell 3.1% and engineering slipped 0.2%, commercial work rose by 4%. There is a record amount of commercial work yet to be done. In the December quarter CBA Group economists expect that construction work fell by 1% with lower residential work outpacing firmer commercial projects.

On Thursday

On Thursday, the ABS releases the report: “Private New Capital Expenditure and Expected Expenditure.” As the title indicates the report includes data on business capital spending (buildings and equipment) and forecasts for spending over the next year. In the September quarter, new business investment fell by 0.2% after falling by 0.6% in the June quarter. Spending on buildings rose by 2.7% in the quarter but spending on equipment fell by 3.5%. In the December quarter, CBA Group economists expect that investment lifted by 1.5%.

On Friday

On Friday, the Reserve Bank releases the private sector credit data. The report includes data on loans outstanding (credit) as well as monetary aggregates like broad money. In December private sector credit rose by 0.2% after lifting 0.2% in November. Annual credit growth was unchanged at 9½-year lows of 2.4%. But housing lending is lifting and that could lead to 0.3% growth in January credit.

Overseas: China factory and services gauges in focus

In the coming week in the US, there is a broad array of new economic data including home prices, economic growth and durable goods orders (a measure of business investment). And the impact of the novel coronavirus outbreak is expected show up in China’s activity gauges. 

On Monday

The week kicks off on Monday in the US, with the Chicago Federal Reserve releasing the National Activity index for January while the Dallas Federal Reserve issues the February manufacturing index.

On Tuesday

On Tuesday, the regular weekly reading on US chain store sales is also due. Standard & Poor’s and CaseShiller release their December home price index. Also, the Federal Housing Finance Agency separately issues the house price index for December. The Conference Board issues its February reading on consumer confidence also on Tuesday. And the Richmond Federal Reserve issues the February manufacturing index.

On Wednesday

On Wednesday the Mortgage Bankers Association releases weekly data on mortgage applications. Also, data on new home sales for January is issued. Sales have been hovering near a 700,000 annual rate but sales dropped from 725,000 to 694,000 over the past three months.

On Thursday

On Thursday in the US, data on pending home sales is issued with durable goods orders, revised economic growth (GDP) data and the Kansas Federal Reserve manufacturing index. The regular weekly data on claims for unemployment insurance (jobless claims) is also issued. Pending home sales may have rebounded by 2% after the 4.9% fall in December. Durable goods orders (orders for goods that last three years or more) may have fallen by 1.5% in January after a 2.4% lift in December. And the estimate of annual economic growth should remain near 2.1%.

On Friday

On Friday in the US the personal income and spending data is released. The data also contains the Federal Reserve’s preferred inflation measure – the core personal consumption deflator. Also released on Friday is the Chicago purchasing manager’s index, consumer sentiment and goods trade balance.

On Saturday

On Saturday the Chinese statistician – the National Bureau of Statistics – issues the February purchasing managers indexes for both the manufacturing and services sectors. These surveys should be fascinating, being the first readings on the Chinese economy after the outbreak of the Covid-19 coronavirus.

Financial markets: Australian corporate reporting season

The Australian corporate reporting (earnings) season winds up in the week ahead.

On Monday

Companies scheduled to report earnings results on Monday include BlueScope Steel, WorleyParsons, WPP and G8 Education.

On Tuesday

On Tuesday: Appen, Blackmores, Estia Health, Oil Search, Alumina, Qube and Caltex.

On Wednesday

On Wednesday: Woolworths, Rio Tinto, Invocare, Nine Entertainment, Nanosonics, Virgin Australia, Healius, Redbubble, Plato Income Maximiser.

On Thursday

On Thursday: A2 Milk, Flight Centre, Ramsay Health Care and Afterpay.

On Friday

On Friday: Harvey Norman and Silex Systems.

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