Deflation pressure in China eases

Kia ora,Welcome to Monday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.I'm David Chaston and this is the international edition from Interest.co.nz.And today we lead with news a bit of price stabilisation is returning to the Chinese economy.Chinese consumer price inflation came in little-changed for August. It was up +0.3% from July, and up only +0.1% from a year ago. Milk and lamb prices fell in the month, beef prices were unchanged from July. Year-on-year milk prices are essentially unchanged but beef and lamb prices were down almost -5%.Producer prices fell again in China but in August this fall was less than in any month since March on a year-ago basis. There were essentially unchanged from a month ago which is the 'best' they have been since October last year.The Japanese economy expanded +1.2% in Q2-2023 from the prior quarter, compared with a flash reading of a +1.5% gain and after a downwardly revised +0.9% rise in Q1. This was the second straight quarter of growth, coming slightly less than market forecasts of a +1.3% rise, and despite being the fastest growth for a year, it was downgraded because of weaker-than-expected household consumption, and investment. Year-on-year, the Japanese economy was +2.0% larger, although the Q2-2023 grew at an annualised +4.8% rate, so relatively fast recently. Just not as fast as earlier indicated.The Americans reported that their household net worth rose to a record US$154 tln in Q2-2023, a rise of +4.8% in a year. They managed that because their household liabilities only rose +3.6% in the same period. Helping is the surprisingly quick recovery suggesting that the residential real-estate downturn is turning out to be shorter and shallower than expected.US consumer credit rose a modest +US$10.4 bln in July, a second month with a solid but unspectacular rise. Household debt isn't an overall problem for them.Meanwhile, under-scrutiny American regional banks saw their profits and deposits broadly steady in Q2-2023, suggesting the turmoil earlier in the year has eased considerably. But a regulator watch is still on for unrealised losses, especially around commercial property loans.There is a major strike threat at American carmakers that we should keep an eye on, howeverAnd also worth noting, Fed whisperer Timiraos says officials are now leaning to a rate pause at their September 21 meeting in ten daysThe Canadian economy added almost +40,000 new jobs in August, far exceeding market expectations of a +15,000 increase. Full-time work rose +32,000 and part-time jobs increased by +8,000 in the month from July. But there were some notable distortions. The number of self-employed rose by +50,000. And the overall