Chinese activity data for August is out, a series of misses:
- China Industrial Production in August 4.4% y/y (expected +5.2%)
- China Retail sales for August: 7.5% y/y (expected +7.9%)
- China Fixed asset investment (excl rural) for August 5.5% y/y (expected 5.7%)
Some of the notable 'highlights':
- IP grew at its slowest pace in 17.5 years
- IP misses
- Retail sales misses - in the details 'essentials' are up (ifood etc) while discretionary spending has fallen further
- Investment missed
- The miss on investment does not augur well for future productions
Comments from China's NBS (the stats folks that publish the data … poor chaps)
- economy faces downward pressure
- economy has significant external uncertainties
- China will accelerate counter0cyclicial adjustments
(ie that means stimulus)
