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Analysts at the Royal Bank of Scotland, point out that after a disappointing Q3, China’s economic activity tugged in opposite directions in October.

Key Quotes

“On the one hand, infrastructure spending grew at a faster clip, thanks to policy support,  while industrial production improved. However, as economic headwinds continued to intensify, both consumers and investors decided to stay on the sidelines.”

“In particular, weak retail sales and tepid credit growth underscored the weakness in domestic demand. To add to the gloom, home sales fell and real estate investment cooled to a 10 month low. And this is happening in a period dubbed as ‘Golden September and Silver October’, the peak spending season in China. Another careful balancing act required by policymakers then.”