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Spanish Annual Industrial Output Gains 1.1% in June

Spain's industrial production, adjusted for seasonal and calendar effects, grew 1.1% year over year in June, following the revised 3.1% increase in May, provisional data from the National Statistics Institute showed Thursday.On a monthly basis, Spanish industrial output declined 0.7%.

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German Monthly Factory Orders Jump 3.1% in June

Germany's monthly factory orders gained 3.1% in June, following the revised 0.3% rise in May, according to preliminary data from the country's Federal Statistical Office published Thursday.Analysts expected a 0.5% increase for the month.On a yearly basis, new orders in manufacturing were up 6.5%, against the revised 4.5% growth earlier.

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Expanding Construction Capacity Increasingly Important for Australian Economy, ANZ Says

Expanding construction capacity is becoming more important for Australia's broader economy as more of it competes for the same construction workers, contractors, and project-management capacity, ANZ Research said in a note on Thursday.The real value of the total construction pipeline is estimated by the Australian Bureau of Statistics to have reached a record AU$172 billion, as of the first quarter. The total construction pipeline is now equivalent to around 25% of real gross domestic product.The pipeline reflects growing demand from housing, infrastructure, data centers, and the energy transition. Population growth is supporting housing demand, investment in data centers has accelerated sharply, and renewable energy and transmission projects are increasing.The drivers of non-residential construction have changed, with the recent increase reflecting expanding investment in the "commercial buildings not elsewhere classified" category, which includes data centers, and, to a lesser extent, education, warehousing, short-term accommodation, and retail/wholesale buildings.In a capacity-constrained environment, labor and contractors are likely to flow towards projects that can absorb higher costs or place greater premium on timely delivery. Construction-related inflation may therefore remain a source of price pressure.Data-center projects are well placed in particular to compete for scarce labor and specialized construction resources.

Saudi Arabia's Construction Sector Growth Eases in July

Overall Saudi construction activity expanded for a third straight month in July, though the pace of growth slowed as non-residential building lost momentum, Alrajhi Capital and S&P Global said Thursday.The headline seasonally adjusted Alrajhi Capital Saudi Construction Index came in at 55.2, down from 56.3 in June.The reading marked the second-highest expansion since the survey began in January, with infrastructure activity growing at the quickest pace in 2026 so far.

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Indonesia's Economy Grows 5.29% in Q2

Indonesia's economy grew 5.29% year-on-year in the second quarter of 2026, according to data released by Statistics Indonesia on Wednesday.The growth beat the 5.1% median forecast in a Reuters poll.On the production side, the electricity and gas supply sector recorded the highest growth in Q2 at 10.81%, the report showed.In terms of expenditure, the government consumption expenditure component recorded the highest growth at 15.97%.On a quarter-on-quarter basis, Indonesia's economy grew 3.73%, with the agriculture, forestry, and fisheries sector posting the highest growth at 12.26%.

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Kusuri No Aoki's All-Store Sales Up 9.6% in July

Kusuri No Aoki's (TYO:3549) all-store sales increased by 9.6%, while existing-store sales added 0.3% in July from a year earlier.The drug store chain's all-store customer traffic climbed 8% while that in existing stores fell 1.9%, according to its Tokyo bourse filing on Wednesday.Average customer spending was up 1.5% across all stores, while that in existing stores was up 2.3%, the release said.Shares of Kusuri No Aoki added nearly 1% in recent trade.

TYO:3549

Total Number of Dwelling Units in Australia Rises Over 7% in June

The total number of dwelling units approved in Australia recorded a 7.2% month-on-month increase to 18,328 in June in seasonally adjusted terms after falling 1.6% in May, according to a report by the Australian Bureau of Statistics released on Thursday.Total dwelling units approved grew 8.9% on last year's 16,827, the report said.Approvals for total dwellings varied, rising in Queensland, New South Wales, and Western Australia in June, but falling in Tasmania, Victoria, and South Australia.Meanwhile, the number of private sector house approvals rose 0.4% to 10,631 in June after rising 2.4% in May, and private sector dwellings, excluding house approvals, increased by about 18% to 7,138 following an 11% fall last month.The value of total building work approved fell 5.5% to AU$20 billion after a more than 12% rise in May, with the value of total residential building rising past 15% to AU$11.75 billion and the value of total non-residential building falling almost 25% to AU$8.26 billion.

Australia Trade Balance Swings to Surplus in June

Australia's goods balance recorded a seasonally adjusted surplus of AU$1.93 billion in June, up from a deficit of AU$2.37 billion in May, according to data published by the Australian Bureau of Statistics on Thursday.Goods exports rose 9.6%, or AU$4.2 billion, to AU$47.7 billion, driven by an increase in the non-monetary gold.Goods imports fell 0.2%, or AU$100 million, to AU$45.77 billion, driven by a decrease in fuel and lubricants.

Australia's Central Bank to Hold Cash Rate Through 2026 Before Cutting Twice in 2027, Jarden Says

Jarden continues to expect the Reserve Bank of Australia (RBA) to hold its cash rate at 4.35% through the end of the year before implementing two cuts in 2027 to take the rate to 3.85%, the investment firm said in an Aug. 5 note.June quarter inflation came in softer than the central bank expected, and combined with a cooling labor market and a widening housing downturn, this sets up a case to hold borrowing costs steady at next week's policy meeting, Jarden said."In our view, the consumer is still soft, and we expect rising rents into next year will ration budgets, and recent GDP prints flattered by lumpy data center spend," it added.Jarden expects Australia's unemployment rate to drift to 4.8% over the course of 2027 from 4.4% currently as decelerating growth bites and employment growth fades toward 0.5%.While the labor market has held up better than Jarden expected, the resilience appears to be thin, as slack moved into underemployment, under-utilization and softer hours, which should allow inflation to keep cooling without a sharp jump in unemployment and provide the RBA room to ease, the investment firm said.

South Korea's Current Account Surplus Surges to Record $49.7 Billion in June

South Korea booked a current account surplus of $49.73 billion in June, up from $38.6 billion in May, according to preliminary data from the Bank of Korea published Thursday.The figure beat Trading Economics' forecast of $34.7 billion and marked the largest surplus on record.Of the total, goods account surplus jumped to $47.9 billion from $37.9 billion as exports surged 84.5% to $112.4 billion.Services account logged a larger deficit of $1.29 billion versus $1.09 billion in May, which the BOK attributed to deficits in other business services and manufacturing services.

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Federal Reserve Watch for Aug. 5: Kashkari Repeat Gradual Rate Increases Starting Soon Preferable to More Aggressive Move Later

Minneapolis Fed President Neel Kashkari (voter) said in an interview with CNBC that he would prefer gradual rate increase sooner, perhaps as early as the September FOMC meeting, rather than be forced to raise rates rapidly later.Recent comments of note:(Aug. 4) Philadelphia Fed President Anna Paulson (voter) said that she is "keeping an open mind" regarding the path of monetary policy and will allow incoming information to determine whether the current level of restrictiveness is appropriate to slow inflation or if more is required.(Aug. 3) New York Fed President John Williams (voter) said in an interview with Reuters that monetary policy is appropriate to continue to put downward pressure on inflation, but it may be necessary to act if that is not the case.(July 31) Minneapolis Fed President Neel Kashkari (voter) published a note explaining that he dissented from the FOMC's decision to hold its target rate steady because he believes that the Fed has a role to prevent temporary inflation increases from supply shocks from turning into entrenched inflation and that he prefers gradual rate increases to suddenly raising rates when the need arises.(July 31) Dallas Fed President Lorie Logan (voter) said that she dissented in favor of a rate increase at the FOMC meeting due to elevated inflation, saying that "(m)odest action in the near term would reduce the likelihood of needing to take sharper action later."(July 31) Cleveland Fed President Beth Hammack (voter) said that she dissented due to inflation being "too high for too long" and that the longer it remains elevated, the more difficult and costly it will be for the FOMC to bring it down. She added that high inflation is a larger issue than slow employment growth at the moment.

Daily Roundup of Key US Economic Data for Aug. 5

ADP private payrolls rose by 44,000 in July after a downwardly-revised 95,000 jobs gain in June, below expectations.The services sectors added 47,000 jobs, led by a 36,000 increase in education and health services hiring, while leisure and hospitality hiring and trade, transportation and utilities hiring declined.Goods sector payrolls fell by 3,000 jobs, with construction and manufacturing payrolls growth more than offset by a decline in hiring in the natural resources and mining sector.The ISM's services index rose to 54.1 in July from 54.0 in June, with gains in the readings for production, new orders and prices but a decline in the employment index to now indicate contraction.The S&P Global nonmanufacturing index was revised higher in July to 54.6 from the flash 53.6 estimate and was above the 51.2 reading in June.The Mortgage Bankers Association reported a 2.9% decline in mortgage applications in the week ended July 31 after a 6.4% drop in the previous week. Refinancing activity and new home applications both declined in the week as 30-year fixed mortgage rates rose to their highest level in over a year.Total crude oil inventories fell by 400,000 barrels in the week ended July 31, with commercial oil inventories up 2.5 million barrels and stocks in the US Strategic Petroleum Reserve down 2.8 million barrels. Gasoline inventories and distillate inventories both decreased last week.

July Private-Sector Hiring Rises Less Than Projected, ADP Data Show Ahead of Key Jobs Report

US private-sector employment increased less than expected in July as the gains were concentrated in just services, ADP (ADP) data showed Wednesday, ahead of the official nonfarm payrolls report for the month due later in the week.Private employers added 44,000 jobs in July, below the 65,000 increase expected in a survey compiled by Bloomberg. The hiring total for June was revised to 95,000 from 98,000, ADP said.The services sector added 47,000 jobs last month, while employment in the goods-producing sector saw a drop of 3,000."The slowdown in the monthly employment gain reported by ADP aligns with our assumption that the labor market isn't in a period of overheating," Matthew Martin, senior US economist at Oxford Economics, said in remarks e-mailed to. "Nor is it a cause for concern, as the number is still within range of our estimate of the breakeven pace of monthly employment growth consistent with stable unemployment."Data from the Bureau of Labor Statistics are likely to show Friday that the US economy added 88,000 nonfarm jobs last month, compared with a 57,000 increase reported for June, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.2%.Annual wage growth for job changers hit 7% in July, the biggest jump since August, while pay gains for job stayers held steady at 4.4%, the ADP report showed Wednesday."Job-changers are highly sensitive to real-time economic conditions, and their rapid pay growth implies supply constraints in parts of the labor market," ADP Chief Economist Nela Richardson said. "Typical hiring patterns, meanwhile, are changing as employers react to shifting macro-economic conditions."Regarding wage growth for job switchers, Martin said he wouldn't jump to any conclusion based on just one of month of data."The quits rate -- a good barometer for workers' confidence in the market -- hasn't budged as of the latest data," he said. "We continue to believe the labor market won't be a source of inflationary pressure."Last week, the US central bank's policy committee said "job gains have kept pace with the workforce, and the unemployment rate has changed little." The Federal Reserve held its policy rate steady for a fifth time at the meeting, in a divided decision that included three officials calling for a hike.Price: $267.86, Change: $-2.76, Percent Change: -1.02%

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Canadian Firms Want Faster Action on the Government's Economic Plan, KPMG Says

Canadian business leaders broadly support the federal government's economic agenda but are calling for faster progress in turning pledges into action, according to a new KPMG survey published on Wednesday.Slightly more than half of respondents, or 51%, expect federal government initiatives to leave their businesses better positioned over the next three years, while 55% view the government's approach to business support as moving in the right direction, said KPMG."Our survey shows business leaders want governments to stay focused on the actions that are within Canada's control to build economic resilience," wrote Lachlan Wolfers, National Leader, KPMG Law, in the survey.As the US-Mexico-Canada Agreement on trade (USMCA), or CUSMA as it's known in Canada, negotiations intensify, 69% of businesses support a firmer Canadian negotiating position, it added.Companies are also adjusting to evolving trade conditions by expanding into markets such as the European Union, the United Kingdom, and Mexico, although the United States remains a key trading partner.US tariff-related cost pressures are feeding into pricing strategies, with 66% of firms indicating they have raised prices to absorb some or all of the impact, while 39% have yet to make pricing adjustments, according to KPMG.The KPMG online survey was conducted June 25 to July 13, among 359 business owners and decision-makers at businesses in Canada with annual gross revenue greater than C$10 million.

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Neutral Rate Gap to Narrow by 2028 as Canada's Stronger Investment Outlook Contrasts with US Slowdown, CIBC Says

Canadian and US neutral rates are expected to partially converge by 2028, largely reflecting differences in the investment dynamics between the two economies, CIBC Capital Markets said in a Wednesday note.A moderation in US artificial intelligence-related investment growth is expected to weigh on the neutral rate, while Canadian investment is anticipated to rebound from historically weak levels, supported by government initiatives, a more favorable regulatory environment and the advancement of large-scale capital projects, wrote Avery Shenfeld, managing director and chief economist of CIBC Capital Markets.A neutral rate is "neither an economic tailwind or headwind, allowing the country to stay on its potential (non-inflationary) growth path," Shenfeld wrote.Canada's more favorable demographic outlook is expected to support investment in housing, infrastructure and productive capacity, as the negative effects of declining non-permanent residents diminish, said the bank. On the other hand, tighter US immigration policies may reduce demographic support for growth and weigh on longer-term economic capacity.As Canadian households complete the refinancing of ultra-low-rate mortgages after 2027, economic activity is expected to become less dependent on lower interest rates as a source of support for household spending. A rise in the Canadian neutral rate is expected to support a gradual policy normalization, though markets may be pricing in the adjustment too early, the bank said.CIBC projects a 50-basis-point tightening cycle later in 2027, contingent on a sustained recovery in growth and the eventual closure of the output gap.In the US, a lower neutral rate by 2028 suggests the Federal Reserve will need a more accommodative policy stance to get full employment. Although near-term inflation risks may warrant additional tightening, any rate increases are likely to be reversed as the neutral rate declines, leaving policy rates below current levels by 2028, according to the bank."That underlies our forecast that policy interest rates could also be closer to each other as we enter 2028 if events unfold in line with our forecasts," said Shenfeld.

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ISM US July Services Index Posts Smaller-Than-Expected Increase

The Institute for Supply Management's US services index rose to a reading of 54.1 in July from 54.0 in June, compared with expectations for a larger increase to a reading of 54.5 in a survey compiled by Bloomberg.The ISM's reading suggests faster expansion which is in line with other regional Federal Reserve bank measures and the S&P Global measure that indicated expansion. The Richmond Fed reading suggested contraction in the month.There were increases in the readings for business activity and production, new orders, inventories and prices, but the reading for employment declined.The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.

July ISM US Services Index 54.1 Vs. Expected 54.5 Print, Prior 54.0

S&P Global July Final Services PMI Revised Upward, Above June Index

The S&P Global US services index was revised upwards to 54.6 in July from the 53.6 flash reading, compared with expectations for no revision in a survey compiled by Bloomberg as of 7:35 am ET.The July index is above the 51.2 reading in June and is the highest for nine months.The index indicates faster expansion, which is in line with most of the other regional services data but in contrast with the Richmond Fed reading which suggested contraction.S&P Global noted stronger domestic demand which led to a rise in new order inflows. There was also a temporary increase in demand for some firms due to major events like FIFA World Cup and US Independence Day events. There was also an improvement in confidence in the outlook due to hopes of easing energy prices and geopolitical tensions.