The week kicks off on Tuesday when the latest weekly reading on consumer confidence is issued by Roy Morgan and ANZ.

On Wednesday, the Housing Industry Association’s survey of homebuilders in the five largest states is scheduled for release. New home sales rose by 2.2% in June 2018 – the first increase this year – reflecting changing conditions in the housing market.

On Thursday, the Australian Bureau of Statistics (ABS) releases the Private Capital Expenditure publication (essentially business investment figures) for the June quarter. New business investment (spending on buildings and equipment) rose by 0.4% in the March quarter to be up 3.7% over the year – just shy of the best growth in five years.

Also the second estimate of investment in 2018/19 was reported at $87.74 billion, 1.4% higher than the second estimate for 2017/18. Expected investment by non-mining and manufacturing firms has never been higher.  And local council building approvals data for July is issued. Council approvals to build new homes rose by 6.4% in June – the largest increase since January. And approvals were up 1.6% on the year. Greater Brisbane house approvals rose to a record rolling annual total of 14,715 over the year to June.

On Friday, The Reserve Bank releases the monthly Financial Aggregates publication, a report that includes the private sector credit measure (effectively ‘loans outstanding’) for July.  Credit growth has slowed to four-year lows, led by the slowest ever growth in housing finance to investors. Tighter bank lending standards and falling home prices in Sydney and Melbourne are behind the weakness.

What’s happening in Yankee land next week?

 

Following the Jackson Hole central bankers annual economic policy symposium over the weekend, US economic growth, trade, inflation, consumer confidence and business surveys will be in focus during the week.

Monday

Business surveys from the Federal Reserve Banks of Chicago and Dallas are due.

Tuesday

The ‘advance’ July data on trade in goods is released. A deficit of US$68.3 billion was posted in June. The Trump Administration is keen on reducing big trade deficits maintained with other countries.  And the S&P/Case-Shiller 20-city home price gauge is released with annual growth running at a he Conference Board’s consumer confidence index, the Federal Reserve Bank of Richmond Manufacturing survey and the regular weekly data on chain stores are also issued.

Wednesday

The second estimate of economic growth for the June quarter is released. GDP growth is expected to be revised down slightly to 4.0%, but remain at the best level in four years. And the July index of contract signings to purchase previously-owned homes (pending sales) is issued with weekly data on new mortgage applications.

Thursday

The personal income and spending report is scheduled. The Federal Reserve’s preferred measure of inflation – the core personal consumption expenditure deflator – will be keenly observed. The deflator is expected to increase by 0.1% in July. And the weekly data on new claims for unemployment insurance is also issued. And the weekly data on new claims for unemployment insurance is also issued.

Friday

In the US, the Chicago purchasing managers index for August is released with the final August reading on consumer confidence from the University of Michigan. The preliminary reading fell to an 11-month low.

Who’s reporting next week?

The earnings season (profit-reporting season) comes to an end next Friday. Results so far have been broadly positive and stable. Among the Aussie companies expected to report earnings:

Monday: AUB Group, Japara Healthcare, Reliance Worldwide and Spark Infrastructure.

Tuesday: Sirtex Medical, Accent Group, Northern Star, Resources, Austal and Caltex Australia.

Wednesday: Boral, Autosports Group, Cabcharge Australia, Independence Group, Regis Resources, Oneview Healthcare, SpeedCast International, Virgin Australia and Westfield Unibail-Rodamco.

Thursday: Atlas Arteria, Gateway Lifetsyle Group, Galaxy Resources, Perpetual, Perseus Mining, Ramsay Health Care and Sandfire Resources.

Friday: GTN, Harvey Norman, Metals X, NEXTDC, Orocobre and Sino Gas & Energy.