Comments from Westpac Senior Economist Elliot Clarke on Chinese data (Q4 GDP) today
Bolding is mine:
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- Service sector continues to provide greater momentum
- Annual growth in the tertiary sector broadly unchanged from three months ago at 8.3%yr, up on Q4 2014's 7.8%yr
- While unchanged from Q3 and Q2, secondary industry growth is well down on 2014's pace, 7.3%yr in Q4 2014 and 7.5%yr in Q2 2014
- Typically momentum is better evinced by the nominal data
- In year to date terms, nominal growth looks to have slowed further in Q4 from 6.6%yr to 6.4%yr.
- In through the year terms, that equates to a 5.8%yr pace in Q4, from 6.2%yr in Q3 and 7.1%yr in Q2
Overall, the loss of momentum evident in the nominal series is a disappointing result, one that emphasizes the need for further policy accommodation to stem the weakness in investment and support continued momentum in the services sector as we head into 2016.
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