Loans for the purchase of new dwellings have risen for 17 consecutive months. Loans for the purchase of new dwellings in July were up by a whopping 37 per cent on July last by number (3,093) and 33 per cent by value ($1,023 million).

Finance commitments for existing housing are an order of magnitude greater by number (43,271) and value ($12,868 million) but their strong growth rate of 13 per cent still lags behind the new stuff that carries the larger payoff in economic activity. Chris Bowen's mini-budget figures embraced by Joe Hockey last week are based on the forecast of a five per cent increase in dwelling investment this financial year. The Master Builders Association believes that forecast is conservative. The momentum picking up in the statistics is with the MBA.

The theory is that a lift in dwelling investment (new housing and renovations) provides a lift in relevant domestic manufacturing activity, as well as jobs for tradies, real estate developers and agents. People moving into a new home are more likely to buy new appliances and furniture to go with it. Some retailers (but not department stores) get a feed and the money goes round.

Meanwhile China's August inflation count came in at an annual rate of 2.6 per cent, leaving plenty of room for monetary easing should Beijing need it to stick to the 7.5 per cent economic growth target – but it looks like that won't. Sunday's trade statistics surprised on the upside with a 7.2 per cent jump in exports, signalling renewed global demand for the stuff China makes. There also was a 7 per cent fall in imports that might be seen as less helpful everywhere except in Australia as our key exports were up. Port Hedland exported 33 per cent more iron ore to China last month than it shipped a year ago.

Tomorrow will see Chinese industrial production and retail sales numbers, both of which should be up. The recent fears about a Chinese hard landing continue to recede and the country's continuing urbanisation and industrialisation continue to provide a cushion of commodities demand while our own economy transitions from the construction phase of the resources boom. Meanwhile Chinese tourism this year has been running at a growth rate of about 20 per cent above last year – all without a Barangaroo casino. China already is our second-biggest source of tourists behind the cousins across the ditch with daylight third.