Jefferies favours Australia, NZ industrials as U.S. consumer uncertainty weighs

Fletcher Building

05/09/2025 05:06

** Shares of Australian industrials Orica ORI.AX and BlueScope Steel BSL.AX rise 1.5% and 0.6% respectively while NZ's Fletcher Building FBU.NZ slips 3.6%

** Jefferies says it remains 'cautious' on the timing of any improvement in the U.S. consumer market and favours Australia and New Zealand non-residential real estate stock exposure, including ORI, BSL and FBU

** Adds, affordability challenges continue to weigh on U.S. consumer and housing-related end market demand, and this looks set to persist through 2HCY25

** Non-residential real estate sector end demand is more favourable, with steady growth underpinned by data centre spends - Jefferies

** YTD, ORI, BSL and FBU are up about 27%, 23% and 11% respectively

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))