Here we go with the numbers again


Chinese economic data on industrial output and investment published Friday added to evidence of a slowdown that some economists said risks breaching the government’s 6% bottom line for growth, unless there is more stimulus.

The data for May included two key pieces of Chinese gross domestic product: value-added industrial production, which rose 5.0% from a year earlier, and fixed-asset investment, up 5.6% during the first five months of the year. Both increases were slower than prior-month reports from the National Bureau of Statistics. Beijing has targeted GDP growth this year between 6.0% and 6.5% — either would be the slowest in a quarter-century.

The factory output number, the weakest since 1992, follows disappointing trade data published this week showing exports nearly flat and imports falling 8.5% in May. Loan expansion in the period lagged every other month this year.

“China will have to introduce more fiscal stimulus to ensure it can reach the 6% bottom line of growth target this year,” said Iris Pang, an economist with ING Bank NV In March, the National People’s Congress approved a 2 trillion yuan ($288.95 billion) stimulus package that included tax and fee reductions that briefly appeared to improve business confidence.

SCMP: “There was yet more bad news for the country’s automotive sector, with vehicle sales plummeting 16.4 per cent in May, the 11th consecutive monthly decline.” Signs point to a trade deal fairly soon.

One Response to “Here we go with the numbers again”

  1. feeblemind Says:

    re Signs point to a trade deal fairly soon.

    I dunno.

    Perhaps if China can spin it as a win for them and a humiliating loss for US, it will happen.

    Xi can’t lose face.

Leave a Reply