Gerard Burg, senior economist at NAB, points out that for the Chinese economy, most of the economic indicators were a little weaker in April, and this was prior to the increase in trade tensions with the United States in early May.

Key Quotes

“The increase in rates on the second phase of US tariffs (from 10% to 25% on around US$200 billion worth of goods) and likely public hearings on the third and final phase are a negative for the manufacturing sector and the broader economy as a whole. The trade relationship remains highly uncertain (given that an agreement could still be reached) as is the domestic policy response, meaning that our economic growth forecasts are unchanged for now – at 6.25% this year, 6.0% in 2020 before dipping below 6% in 2021.”

“China’s industrial production increased by 5.4% yoy in April – down from an unusually strong 8.5% yoy in March (which was likely related to one-off factors). PMI surveys are near neutral levels, with export order indicators still weak prior to the latest trade tension escalation.”

“Real fixed asset investment growth slowed to 4.9% yoy (from 6.1% in March). This slowdown has largely been driven by private sector firms, where growth has eased. In contrast, investment by state-owned enterprises has accelerated in recent months.”

“A fall in exports (both month-on-month and year-on-year) and an increase in imports led to a narrowing in China’s trade surplus in April. The surplus totalled US$13.8 billion, the weakest result since the surprise trade deficit recorded in March 2018.”

“Growth in real retail sales slowed significantly in April – down to 5.1% yoy (from 6.7% previously). This was the weakest rate of growth since May 2003. Despite the weak rate of growth of real retail sales, China’s consumer confidence has remained at high levels. In March, confidence dipped marginally to 124.1 points (off an all-time high of 126 points in February).”

“China’s new credit issuance has remained strong in the early months of 2019 – suggesting that authorities are seeking to support growth in the short term.”

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures