China’s GDP expanded by 6.8% over the last year, as investors await the latest healthcheck on Britain’s retail sector
- China on track to beat 2017 growth target
- The agenda: UK retail sales at 9.30am
- UK retail spending may have fallen
- Political drama in New Zealand, Catalonia, Brussels…
Finnish economist Iikka Korhonen suggests that China’s growth rate is suspiciously consistent, despite remarkable volatility in business spending, factory output and retail sales.
China data day!
GDP Y/Y 6.8% (est 6.8%, prev 6.9%)
Retail sales 10.3% (10.2%, 10.1%)
IP 6.6% (6.5%, 6%)
Fixed asset YTD 7.5% (7.7%, 7.8%) pic.twitter.com/hfUXyHHQxz
Financial experts are often sceptical about China’s growth figures, arguing that they could be manipulated by officials to produce a number to Beijing’s liking.
But on face value, today’s Q3 GDP report looks fairly impressive.
Property Sales finally showed some signs of slowing in response to the curbs, and while govt spending on infrastructure and some inventory building were key contributors to growth, it is also increasingly obvious that the Services sector (particularly the tech sector) is increasingly becoming a, if not the, primary driver of growth, i.e. signalling that the economy is actually rebalancing.