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New automobile gross sales raise; Wages positive factors; Payrolls regular
Building hiring exercise hits 6-year excessive
New automobile gross sales; Weekly Payrolls; Building gauge; Providers exercise
New automobile gross sales: New automobile gross sales totalled 83,977 models in February, up 5.1 per cent on a yr in the past. Whereas gross sales have now grown in annual phrases for 4 months, it follows 31 months of falling gross sales.
Survey of payrolls & wages: The Bureau of Statistics (ABS) reported that nationwide payroll jobs have been regular and wages elevated by 2.1 per cent between the week ending 30 January 2021 and the week ending 13 February 2021. Payroll jobs as at February 13 have been simply Zero.5 per cent decrease than a yr earlier and 1.three per cent beneath ranges at the beginning of the pandemic.
Building sector: The Australian Business Group (AiGroup) Efficiency of Building Index (PCI) eased from a 3½-year excessive of 57.6 in January to 57.four in February. Condominium constructing rose 21.2 factors to 3½-year excessive of 66.7 and home constructing climbed 10.2 factors to a record-high 75.5. The employment index was up four.7 factors to a 6-year excessive of 61.7. Readings above 50 signifies an growth of exercise.
Buying managers’ indexes (PMI): The ‘ultimate’ IHS Markit providers buying supervisor index fell from 55.6 to 53.four in February. The composite index, which measures mixed providers and manufacturing output, eased from 55.9 to 53.7 in February. Readings above 50 signifies an growth of exercise.
New automobile gross sales information offers insights into enterprise and shopper spending and offers steerage on situations for the Autos and Parts sector of the sharemarket. The payroll and wage information helps authorities with selections on help measures for households and companies. The Efficiency of Building index offers insights for enterprise situations within the sector. The buying supervisor index offers a information to situations in manufacturing and providers sectors.
What does all of it imply?
• Aussies are upgrading their wheels. New automobile gross sales have lifted for 4 successive months after the longest hunch (31 consecutive months) because the International Monetary Disaster. The turnaround in gross sales is being pushed by cashed-up non-public consumers with purchases up 15.eight per cent in February. However gross sales to authorities companies (down 13.eight per cent) and companies (down four.Zero per cent) each fell, regardless of enhancing enterprise situations. The Toyota Hello-Lux Ute continues to be Australia’s primary promoting new motorized vehicle with four,808 models bought in February. And Chinese language producer MG broke into the highest 10 with gross sales volumes of 5,425 models within the month.
• Australia’s residential constructing business goes gangbusters, fuelled by record-low rates of interest and authorities stimulus. Aussies have been dashing to get the constructing of their new houses underway forward of the expiry of HomeBuilder grants on the finish of March. The surge in demand has seen new home constructing building exercise hit report highs in February. Now the AiGroup condominium constructing exercise index has surged to 3½-year highs. Builders are reporting “localised expert labour shortages” with the AiGroup common wages index at 2½-year highs and the employment index on the highest stage since September 2014.
• And the excellent news on the employment entrance continues in the beginning of 2021. In its survey of buying supervisor enterprise exercise in February, IHS-Markit economists reported that, “the continuing upturn in demand inspired corporations within the providers sector to increase employment ranges on the quickest tempo on report.”
• The Bureau of Statistics (ABS) measure of employment utilizing Single Contact Payroll (STP) information confirmed that payrolls have been regular within the first half of February. However payrolls did raise in six states and territories over the fortnight to February 13 with the most important positive factors within the Northern Territory (up 1.four per cent), adopted by Queensland and South Australia (each up Zero.5 per cent). After all, snap lockdowns in WA and Victoria weighed on hiring with payrolls down Zero.four per cent in each states. That stated, Victorian lockdown three.Zero solely commenced on February 12. The tightening of the labour market noticed wages improve 2.1 per cent over the primary half of February, led by 2.four per cent pay positive factors in NSW and South Australia.
What do you want to know?
New automobile gross sales – February
• New automobile gross sales totalled 83,977 models in February, up 5.1 per cent on a yr in the past. Whereas gross sales have now grown in annual phrases for 4 months, it follows 31 months of falling gross sales.
The Federal Chamber of Automotive Industries reported:
• “The February 2021 market of 83,977 new automobile gross sales is a rise of four,037 automobile gross sales or 5.1 per cent on February 2020 (79,940) automobile gross sales. February 2020 and February 2021 every had 24 promoting days and this resulted in a rise of 168.2 automobile gross sales per day.
• The Passenger Car Market is down by three,466 automobile gross sales (-15.three per cent) over the identical month final yr; the Sports activities Utility Market is up by three,378 automobile gross sales (eight.6 per cent); the Gentle Industrial Market is up by three,784 automobile gross sales (24.three per cent); and the Heavy Industrial Car Market is up by 341 automobile gross sales (13.eight per cent) versus February 2020.
• Toyota was market chief in February, adopted by Mazda and Hyundai. Toyota led Mazda with a margin of 10,Zero53 automobile gross sales and 12.Zero market share factors.
• The Toyota Hilux was the best-selling automobile in February 2021 with gross sales of four,808 automobiles, adopted by the Ford Ranger (2,900), the Toyota RAV4 (2,750), the Toyota Landcruiser (2,521) and the Toyota Corolla (2,427).”
• Gross sales throughout states and territories over the yr to February: NSW (up 10.eight per cent); Victoria (down eight.7 per cent); Queensland (up 14.eight per cent); South Australia (up four.7 per cent); Western Australia (up 21.7 per cent); Tasmania (down three.9 per cent); Northern Territory (up 32.7 per cent); ACT (down 38.three per cent).
• 12 months-to-date gross sales of 163,643 automobiles is up 7.9 per cent on the identical interval in 2020.
Weekly payroll and wages – Week ending February 13
• In accordance with the Australian Bureau of Statistics (ABS), within the interval from January 30, 2021 to February 13, 2021, Australian payroll jobs have been regular and nationwide wages elevated by 2.1 per cent. Payroll jobs as at February 13 have been Zero.5 per cent decrease than a yr earlier and 1.three per cent beneath ranges at the beginning of the pandemic.
• Payrolls throughout state and territories from January 30, 2021 – February 13, 2021: NSW (+Zero.2 per cent); Victoria (-Zero.four per cent); Queensland (+Zero.5 per cent); South Australia (+Zero.5 per cent); Western Australia (-Zero.four per cent); Tasmania (+Zero.three per cent); Northern Territory (+1.four per cent) and the ACT (+Zero.2 per cent).
• Between the week ending 30 January, 2021 and the week ending 13 February, 2021 the most important adjustments throughout business have been:
Payroll jobs: Training and coaching payrolls elevated by 2.eight per cent. However Agriculture, forestry and fishing and Rental, hiring and actual property providers payrolls each decreased by 2.three per cent.
Whole wages: Mining wages elevated by 7.2 per cent and Building wages elevated by 5.5 per cent.
Employment measurement payroll jobs: Beneath 20 staff (-2.Zero per cent); 20-199 staff (+Zero.1 per cent); 200 staff and over (+1.1 per cent).
Efficiency of Building index (PCI) – February
• The Australian Business Group (AiGroup) Efficiency of Building Index (PCI) eased from a 3½-year excessive of 57.6 in January to 57.four in February. Readings above 50 signifies an growth of exercise.
• Total building exercise rose by four.Zero factors to 61.four; new orders have been down eight.5 factors to 50.1; promoting costs rose 6.7 factors to 66.three (report excessive); common wages lifted three.three factors to 64.four (2½-year excessive); enter costs elevated three.eight factors to 80.2 (2½-year excessive); and employment was up four.7 factors to 61.7 (6-year excessive).
• Exercise in two out of 4 building sectors lifted: Condominium constructing rose 21.2 factors to 66.7 (3½-year excessive); home constructing climbed 10.2 factors to 75.5 (report excessive); engineering building fell Zero.5 factors to 52.eight; business building misplaced eight.Zero factors to 54.5.
• In accordance with the AiGroup, “Residential builders stated clients are nonetheless asking for his or her initiatives to start ‘as quickly as attainable’ on account of authorities grant eligibility. A number of the surge in demand for brand new homes is now flowing into residences. Industrial builders famous a rise in demand for alterations from retailers, eating places, places of work and hospitals requiring new fit-outs or modifications in an effort to meet ‘COVID-19 secure’ operational necessities.”
IHS Markit Buying Managers’ indexes (PMI) – February
• The ‘ultimate’ IHS Markit providers buying supervisor index fell from 55.6 to 53.four in February. The composite index, which measures mixed providers and manufacturing output, eased from 55.9 to 53.7 in February. Readings above 50 signifies an growth of exercise.
• IHS Markit economists reported, “The Australian providers sector remained properly inside growth territory in February, regardless of softer will increase in each exercise and new orders. Companies commented that the easing of broad COVID-19 restrictions had boosted demand and exercise, though famous that the transient tightening of restrictions in Victoria state had barely dampened enterprise situations. Nonetheless, service suppliers have been inspired to additional increase staffing ranges. Furthermore, the tempo of job creation was the quickest on report, linked by corporations to sustained enhancements in demand situations. The outlook for the Australian providers economic system stays optimistic, with expectations for an growth in exercise sustained at excessive ranges. Companies have been hopeful that worldwide restrictions can be eased extra extensively and set off a wider restoration in exercise, with extra assist from new product launches.”
What’s the significance of the financial information?
• The Federal Chamber of Automotive Industries releases estimates of recent automobile gross sales on the third enterprise day of the month. The figures spotlight the energy of shopper spending in addition to situations going through auto & elements corporations.
• The ABS information Weekly payroll jobs and wages “offers indicative data on the financial impression of the COVID-19 coronavirus on staff, together with adjustments in worker jobs, adjustments in whole wages, and adjustments in common weekly wages per job.”
• The Australian Business Group compile the Efficiency of Manufacturing Index, the Efficiency of Providers index and the Efficiency of Building index every month (the latter with the Housing Business of Australia). IHS Markit additionally compile buying supervisor surveys for manufacturing and providers sectors. The surveys are amongst the timeliest financial indicators launched in Australia. The surveys are helpful not simply in displaying how key sectors are performing but in addition in offering some sense about the place they’re headed. The important thing ‘ahead trying’ elements are orders and employment.
What are the implications for buyers?
• Has there been an inflation revival in the actual economic system? Nicely within the higher performing sectors of the Aussie economic system, the place demand is robust, enterprise house owners would argue there may be. Actually, within the AiGroup survey in February the index for enter costs hit 2½-year highs amid sturdy demand for constructing supplies and provides. And within the IHS-Markit economists reported, “enter worth inflation continued within the newest survey interval, as common price burdens confronted by corporations within the Australian service economic system elevated for the ninth month in a row. The newest improve accelerated from January and was the quickest registered since July 2018.” And look out for rising wage prices within the strongly performing building and mining industries amid expertise shortages.
The data introduced on this e mail is an extract of a CommSec Financial Insights report. The total report is revealed on the CommSec web site (beneath Market Information > The Markets). The extract and report are permitted for distribution in Australia solely and should not be directed or distributed to any individual or entity exterior Australia, besides with the prior approval of your Enterprise Unit Compliance workforce.
The extract has been ready with out making an allowance for your goals, monetary state of affairs or wants. It isn’t to be construed as a solicitation or a suggestion to purchase or promote any securities or monetary devices, or as a advice and/or funding recommendation. Earlier than performing on the data on this report, you need to learn the total report and corresponding disclaimers, and think about the appropriateness and suitability of the data, having regard to your individual goals, monetary state of affairs and desires and, if obligatory, search acceptable skilled of monetary recommendation.
Printed by Ryan Felsman, Senior Economist, CommSec