Analysts at Standard Chartered suggest that China’s economy managed to hold up in August as industrial production (IP) growth was in line with market expectations, up marginally in August to 6.1% from 6.0% in July – partly due to a favourable base effect.
“After accelerating temporarily in April and May, the industrial sector appears to have stabilised at around 6.0% growth.”
“However, we think growth in China is likely to ease in the coming months, reflecting trade pressures and slowing housing-market growth.”
“We forecast Q3- and Q4-2018 GDP growth at 6.5% and 6.4% y/y, respectively, versus average 6.8% y/y in H1.”
“China’s government has clearly shifted its policy priority to stabilising growth from deleveraging amid escalating tensions with the US.”
“We see the policy shift as a signal that the government will make a concerted effort to achieve its 6.5% growth target for 2018.”
“Meanwhile, the People’s Bank of China (PBoC) has removed its tightening monetary policy bias, providing ample liquidity in the interbank market.”
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 securities. 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 Forex 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.