China update: GDP and retail sales in line with expectations but disappointing industrial production

Chinese economic data released today were almost in line with expectations. GDP rose by 6.7% y/y, retail sales by 10.7% y/y and fixed asset investments by 8.2%. The only disappointing data was industrial production, which expanded 6.1% y/y against expectations at 6.4%.

Q3 data put Chinese economy putting it firmly on track to meet the government’s full-year target of at least 6.5% even if concerns are mounting that the rate could decelerate as officials try to cool an overheated property sector. However, the recent weakening of the Yuan could help to bolster the economy, offsetting the possible slowdown in domestic demand due to property tightening.

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