Vicious cycle: falling land sales hitting local government revenues
Deteriorating conditions in China’s residential property sector since mid-2021 has seen new construction activity and land sales decline in year-on-year terms. While the former points to weaker near-term economic growth prospects, the latter is a major concern for local government revenues as many of these authorities are highly dependent on revenue from land sales. The composition of buyers also points to concerns around the longer-term sustainability of local government balance sheets.
For further details, please see the China Economic Update (October 2022)
Consumer stress is rising again with Australians wary about the outlook for the year ahead. Household pressures are set to ease but until then the mantra for many consumers appears to be, “Show me the money”!
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Total spending went up 0.6% m/m. Overall, total consumer spending increased 1.9% in 3-month average terms and 6.5% over the past 12 months.
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