Chinese Data Disappoints – Trade War, Weakening Demand Weigh
Industrial production growth in China witnessed a steep decline, climbing 4.7% YoY higher during October, coming in weaker than expected
Industrial production growth in China witnessed a steep decline, climbing 4.7% YoY higher during October, coming in weaker than economists’ forecast for a 5.4% growth. The US-China trade war and an overall weakness in global demand and economic growth are weighing heavily on China’s manufacturing sector, driving this decline.
In more troubling signs for the Chinese economy, retail sales have also come in lower than expected during this period. Retail sales in China rsoe 7.2% YoY during October, lower than the expected 7.9% growth.
Investments into fixed assets also increased by 5.2% till October this year, the lowest growth seen since 1996, the first time that this data set was recorded. Expectations were for a 5.4% increase for this period. Meanwhile, fixed asset investment by the private sector rose 4.4% till October in 2019.
The Chinese yuan has not shown much of a reaction to these disappointing figures so far, with USD/CNH trading at around 7.023 at the time of writing.
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