China: Activity indicators weaken in May, trade concerns rising - NAB
|Tony Kelly, Senior Economist at NAB, notes that China’s industrial production eased in May, but remained within the range it has been in since early 2017.
Key Quotes
“Trends were mixed across the key industrial sectors.”
“Fixed asset investment growth weakened further in May; on a three-month basis, the annual growth rate, in nominal terms, is at its lowest level since 1999.”
“Government policies implemented to cool the residential property sector have impacted house price growth although there are tentative signs that house price growth for existing dwellings is stabilising. Growth in housing sales has also slowed significantly but so far construction activity has remained strong.”
“Trade tensions between China and the United States remain a major source of concern. In particular, the risk of a escalating cycle of retaliatory measures has increased, with tariffs set to be raised in early July by both the US and China, and the US already flagging a further round of tariff increases (covering $200b worth of imports).”
“China’s retail sales data softened noticeably in May both on a nominal and real basis.”
“China’s new credit issuance declined by 15.5% yoy over the first five months of 2018.”
“The People’s Bank of China (PoBC) is trying to manage a slowdown in credit growth while at the same time ensuring that the economy grows at an acceptable rate - the focus appears to be on ‘stability’.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.