China macro data suggest ongoing moderate slowing

Over the last week, China’s statistical office has released its macroeconomic data set for August. Indicators came in again mixed with some small positive and negative surprises, but overall the data confirmed the view of an ongoing mild slowing.

Highlights:

  • China’s August macroeconomic data set came in again more mixed, with an overall tendency of a further softening.
  • Especially, urban investment continued to weaken as some ongoing loosening of fiscal policy failed so far to lift infrastructure investment.
  • Export and import growth softened, but overall their levels are still very strong.
  • While last week US President Trump looked ready to impose another round of tariffs on Chinese imports, most recently the US offered new trade talks. We tend to remain sceptical about a positive outcome.

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CHINA MACRO DATA SUGGEST ONGOING MODERATE SLOWING

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