Sales of Chinese property fell 28.1% in June from a year ago, deeper than May’s 19.7% decline.
Property investment fell 7.9% in the year’s first half, also marking a faster drop.
The sector, accounting for a fifth of China’s GDP, contributed to disappointing growth in the second quarter.
The Chinese property sector is contracting at a faster pace, representing a bigger drag on the world’s second-largest economy.
Property sales by floor area fell 28.1% in June from a year ago, marking the largest drop of the year and deepening from May’s 19.7% decline, according to official data compiled by Reuters.
Meanwhile, real-estate investments declined 7.9% in the January-June period, worse than the 7.2% dip in the January-May stretch, Bloomberg said citing official data.
The numbers are the latest signs of the downturn that has seen Chinese developers continue to face a heavy debt burden, sluggish demand for new property, and potential homebuyers focusing on saving amid a slumping economy.
Home prices also dropped for the first time this year in June, and Reuters reports that many developers are having a hard time finishing pre-sold housing constructions, something that has previously resulted in a mortgage boycott among homebuyers.
New construction starts by floor area dropped 24.3% year on year, and developer fundraising fell 9.8%.
As the property sector accounts for around one-fifth of China’s GDP, its declining health has also dragged down second-quarter growth for the country, which rose 6.3% from a year ago. This is well below the 7.1% forecast among economists.
Cooling GDP was also on account of a pullback in private investment, with industrial output weak as well.
In prior months, Beijing has introduced some measures to help support the ailing market, such as loan extensions and an end to restrictions on property purchases. It has also provided stimulus towards infrastructure measures.
According to Bloomberg, China’s leadership is set to meet this month to discuss economic policy.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
