China’s growth is slowing much faster than expected

The latest data out of China will give those expecting a soft landing pause about China's economic situation. While inflation has come down somewhat of late, so too have industrial output and capital investment. The April industrial production figure was the most worrying as we saw slowest annual expansion in nearly three years. Moreover, according to Reuters, growth in capital investment slowed to the lowest in nearly a decade.

Now, these growth numbers are still robust by western standards. For example, China reported the growth in industrial production in April slowing to 9.3% y-o-y from 11.9% and retail sales growth slowing to a still robust 14.1% y-o-y from 15.2%. But it is the direction of the change and the magnitude of that move which is alarming.

Moreover, loan growth is wea...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More