Eurozone | Firms’ margins won’t furnish long-lasting lift to inflation
Profitability has staged an impressive recovery, but the rise in Q1 operating margins to a 12-year high materially overstates corporate health. Excluding direct transfers to firms, operating margins remain below their weak 2019 average.
What you will learn:
- Gradual withdrawal of fiscal support is bound to offset part of the profitability boost from the expected added recovery in demand near term.
- Labour costs should remain well under control, though. Widely used furlough schemes have cut firms’ wage bills. But underlying pay growth also slowed to new lows during the pandemic.
- Soaring commodity prices and global supply shortages have boosted non-wage costs, especially for durable-goods producers. But we continue to think that once bottlenecks ease, input prices will soften quickly.
Australia: Roadblocks cleared for build-to-rent in Australia
The pipeline of build-to-rent (BTR) developments across Australia continues to swell, with our project tracking currently capturing a pipeline of circa 45,000 announced units. Around 5,900 units have broken ground in FY2023, with a further 15,000 geared to commence across FY2024 and FY2025.Find Out More
How bank turmoil is impacting APAC commercial real estate credit
Recent bank funding turmoil is likely to lead to tighter lending conditions in commercial real estate markets in the Asia-Pacific region.Find Out More