China Q2 GDP cheers market participants, industrial production falls in June
Source: FxWire Pro - Commentary / 16 Jul 2018 05:42:14 America/New_York
China’s gross domestic product (GDP) for the second quarter of this year cheered market participants while industrial production fell during the month of June. Underlying growth seems to be weakening after a strong development last year, as the drop in IP growth is showing signs of.
According to National Bureau of Statistics (NBS), Chinese GDP rose by 1.8 percent q/q in Q2, while the y/y growth rate fell by 0.1 percentage point to 6.7 percent y/y from Q1 to Q2.
Further, industrial production rose by 6.0 percentage y/y in June, while consensus had expected an increase of 6.5 percent y/y. Growth has slowed by 1 percentage point from April to June. The slowdown was broad based with a fall in the y/y growth rates for electricity, steel and glass, cement and iron ore.
In addition, retail sales rose by 9.0 percent y/y in June, up from 8.5 percent in May and higher than consensus’ expectations of an increase of 8.8 percent. Adjusted for price changes sales rose by 7.0 percent y/y, up by 0.2 percentage point from May.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.