Following more dismal data from the US, hope for global growth remains in China and they did not disappoint. Despite slumping macro data, a major slowdown in real estate, and the nation’s deleveraging efforts in the last three months, GDP beat, Retail Sales beat, Industrial Production surged, and even fixed asset investment was above expectations. The Yuan hasn’t moved.
For the last three months, Chinese data has been disappointing, along with US, as the collapsing credit impulse leaks into reality…
***
But exports and consumer spending have been pillars for the economy over the second quarter, offsetting the curb on leverage, and tonight’s data shows that none of that matters.. because the deleveraging economy beat across the board
China GDP BEAT 6.9% (exp +6.8%, prior +6.9%) China Retail Sales BEAT 11.0% (exp +10.6%, prior +10.7%) China Fixed Asset Investment BEAT 8.6% (exp +8.5%, prior +8.6%) China Industrial Production BEAT 7.6% (exp +6.5%, prior +6.5%) As the charts below show, more of the same well-managed data to show that all is well enough that hope remains…Strong growth again reflects an economy awash in credit, foretold in the latest new yuan loans (1.54 trillion yuan) and aggregate social financing (1.78 trillion yuan).
This post was published at Zero Hedge on Jul 16, 2017.
Follow on Twitter
Recent Comments