NEW data has thrown doubt on the strength of Australia's rebound from the global financial crisis. Corporate profits and stockpiles slumped sharply in the June quarter, while business lending was still going backwards in July.

On a day when the Chinese sharemarket staged another spectacular plunge amid growing concerns over the strength of China's recovery, the run of favourable data in Australia hit a hurdle, or several of them, suggesting tomorrow's national accounts might be more subdued than we had expected.

Yet speculation on an early rise in interest rates only increased after real estate monitor Residex reported that house prices jumped 1.1 per cent in July to a record, under the stimulus of first home buyers grants.

Financial markets have now priced in three rate rises in the next six months, the first in November. The Reserve Bank board holds its September meeting today, but is expected to keep rates on hold for now.

The Bureau of Statistics yesterday reported that corporate profits slumped 7.8 per cent in the June quarter after seasonal adjustment. It was their third consecutive quarterly fall, and the steepest yet.