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Analysts at TD Securities point out that China’s GDP increased by 6.7% y/y in Q2, 1.8% q/q and 6.8% YTD y/y and the data were roughly in line with consensus expectations and marks a slight slowing in the annual pace of growth compared with Q1.

Key Quotes

“Other data revealed that June retail sales grew by a better than expected 9.0% and June IP grew by a softer than expected 6.0% y/y (consensus 8.8% and 6.5%, respectively).”

“The data may come as a bit of relief given recent softer releases. Indeed last Friday’s release of money supply and aggregate financing data provided further signs of a slowdown in the economy, adding to other recent evidence of slowing activity in high frequency indicators.”

“Overall with a slightly stronger sales outcome and weaker IP, on balance the reaction will be limited.”