China’s July retail sales, industrial production and fixed assets data were all weaker than expected, notes the research team at TDS.
Key Quotes
“Retail sales rose 8.8% y/y (consensus 9.1% y/y), IP rose 6.0% y/y (consensus 6.3%) and Fixed Assets rose 5.5% (consensus 6.0%).”
“Retail sales growth has now slowed to its weakest since December 2003. This follows data yesterday showing a further slowing in aggregate financing in July though the pace of new loans and M2 growth picked up even as M1 and M0 weakened.”
“If anything the data will spur more pressure for stimulus measures and highlights the trend of recent data showing a slowing in China’s growth momentum.”
“Although China has become a little more concerned about CNY weakness given the recent re-imposition of reserve requirements on forward transactions, the recent bout of CNY depreciation, will have helped to ease financial conditions.”
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