Is the US in the early stages of a manufacturing Supercycle?

• China’s Central Bank has cut two key benchmark lending rates to stimulate their economic recovery.
• The US Inflation Reduction Act has had a significant impact on long-term infrastructure projects in the US with hundreds of billions of dollars of direct foreign investment pouring into the US that many say will start a manufacturing Supercycle.
• As of April, spending on manufacturing construction – new factories – is tracking at a $189 Billion annual rate, triple the average rate in the 2010 ($63 billion). Axio
• The underlying economy in the US is very strong with significant demand for jobs and materials. Where the US goes, we tend to follow…just saying.
• Over the last two weeks, the Aussie dollar rose 5%, hitting a 4-month high of US 69c. against a weaker greenback as the US Fed paused on their rate hikes. The Aussie dollar is now down at US 68c.
• Michelle Bullock, the Reserve Bank’s Deputy Governor, has suggested the current jobless rate of 3.6% would have to rise to 4.5% to bring inflation within the RBA’s target range of 2%-3%.
• Our eyes are looking to the RBA July 4 meeting.
• S&P ASX 200 is down slightly today at 7339.
• The latest REIWA statistics show there are less than 2,500 homes listed for sale in the Perth area. Available houses, land and apartments are 36% below the same week last year.
• The rushed introduction of the Indigenous Heritage laws may accidentally impact residential homeowners.  Beware if you have a landholding exceeding 1,100 sqm.
• Selling in winter gives you the advantage of less competition. Call me today for your personalised plan…and I will get you sold so you can buy in Spring.