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15 Apr 2015
China GDP and Industrial Production hit 6-year lows – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments on the key developments in the Chinese market – GDP and IP data release, PBoC advisors view on the dangers of massive stimulus.
Key Quotes
“China Q1 GDP slowed to a 6-year low of 7% - on pace with 2015 target and in line with estimates. Services industry contributed 51.6% of GDP, up from 51.2% in 2014.”
“Industrial production also slowed to a 6-year low of 5.6% and 6.4% YTD, with key component of power generation falling 3.7% y/y.”
“Fixed investment YTD growth hit multi-year low of 13.5%, as property sales values and areas fell nearly 10%. Retail sales growth of 10.2% in March was also a multi-year low.”
“China Stats Bureau head Sheng noted the growth slowdown was a positive for structural adjustment, and there is still plenty of room to increase infrastructure investment.”
“Despite the slower retail spending, Sheng added consumption growth is solid, but acknowledged that decline in industrial output growth is dramatic. In regards to power output drop, Sheng said the decline is due to improved efficiency of electricity.”
“Headed into the release, former PBoC adviser said massive monetary and fiscal stimulus would undermine growth and stability in the medium and long term, urging policymakers to aim for "sustainable" growth.”
“A separate press report also noted there's still ample room to lower RRR setting for banks this quarter.”
“China Q1 GDP q/q: 1.3% v 1.4%e; y/y: 7.0% (6-year low) v 7.0%e”
“China March industrial production y/y: 5.6% (6-year low) v 7.0%e; ytd: 6.4% v 6.9%e”
“China March ytd fixed urban assets y/y: 13.5% (multi-year low) v 13.9%e”
“China March retail sales y/y: 10.2% (multi-year low) v 10.9%e; ytd: 10.6% v 10.8%e”
Key Quotes
“China Q1 GDP slowed to a 6-year low of 7% - on pace with 2015 target and in line with estimates. Services industry contributed 51.6% of GDP, up from 51.2% in 2014.”
“Industrial production also slowed to a 6-year low of 5.6% and 6.4% YTD, with key component of power generation falling 3.7% y/y.”
“Fixed investment YTD growth hit multi-year low of 13.5%, as property sales values and areas fell nearly 10%. Retail sales growth of 10.2% in March was also a multi-year low.”
“China Stats Bureau head Sheng noted the growth slowdown was a positive for structural adjustment, and there is still plenty of room to increase infrastructure investment.”
“Despite the slower retail spending, Sheng added consumption growth is solid, but acknowledged that decline in industrial output growth is dramatic. In regards to power output drop, Sheng said the decline is due to improved efficiency of electricity.”
“Headed into the release, former PBoC adviser said massive monetary and fiscal stimulus would undermine growth and stability in the medium and long term, urging policymakers to aim for "sustainable" growth.”
“A separate press report also noted there's still ample room to lower RRR setting for banks this quarter.”
“China Q1 GDP q/q: 1.3% v 1.4%e; y/y: 7.0% (6-year low) v 7.0%e”
“China March industrial production y/y: 5.6% (6-year low) v 7.0%e; ytd: 6.4% v 6.9%e”
“China March ytd fixed urban assets y/y: 13.5% (multi-year low) v 13.9%e”
“China March retail sales y/y: 10.2% (multi-year low) v 10.9%e; ytd: 10.6% v 10.8%e”