China: Soft economic releases – TD Securities

Sandeep Kanihama FXStreet Contributor

TD Securities analysis team notes that China’s data was softer than expected across the board as industrial production increased by 4.4%% y/y (mkt 5.2%) declining further from a multi-year low of 4.8% y/y in July.

Key Quotes

“China’s manufacturing PMI has been in contraction for 4 straight months, while other indicators such as electricity production remain weak, suggesting limited prospects of any bounce.”

“Similarly after a sharp slowing to 7.6% y/y in July retail sales fell even further to 7.5% y/y in Aug (mkt 7.9%), its lowest since Jan 2007. Finally, fixed assets investment slipped to 5.5% y/y (mkt 5.7%) from 5.7% previously, marking a clean sheet of weaker data. This data will concerning for China’s authorities and could provoke further targeted easing.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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