China's Industrial Growth Slows; Retail Sales Surprise Analysts \ stacker news ~econ

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China's Industrial Growth Slows; Retail Sales Surprise Analysts

379 sats \ 14 comments \ @TomK 17 Jun econ

China's industrial production growth in May significantly slowed, falling short of expectations. However, retail sales outperformed analysts' predictions.

The industrial sector saw a modest year-over-year increase of 5.6%, down from April's 6.7%, according to official statistics released Monday. Analysts had anticipated a smaller decline to 6.2%.

Investment in non-agricultural sectors grew by 4.0% in the first five months, a slight decrease from the 4.2% growth recorded through April. Experts had expected the previous growth rate to continue.

In contrast, retail sales were a bright spot, rising by 3.7% in May, exceeding April's 2.3% increase. Analysts had forecasted only a 3.0% rise.

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53 sats \ 1 reply \ @Coinsreporter 17 Jun

While they are trying to associate this with the real estate slump once again. I can see that in reality the narrowing interest margins and a weakening currency are constraints that Beijing has been overlooking for a while now.

11 sats \ 0 replies \ @TomK OP 17 Jun

yes, China is in the middle of deleveraging. it's going to be a hot ride anyway, given the demographics

42 sats \ 1 reply \ @0xbitcoiner 17 Jun

Could these be the effects of the tariff hikes by the US and EU? The real estate market seems to be struggling, but that was to be expected. I can already see the Chinese government injecting more money and credit in the market.

32 sats \ 0 replies \ @TomK OP 17 Jun

the real estate market in China is collapsing for two reasons: firstly, because of demographics and secondly, because the communist government has used this market for years, if not decades, to prop up a weakening economy and create overcapacity. this is now being reduced until they inflate it again

42 sats \ 9 replies \ @Satosora 17 Jun

Seems like they have been falling short of expectations for a while now. How will they be able to prop up their failing currency?

20 sats \ 8 replies \ @TomK OP 17 Jun

They just have to make sure that it does not depreciate faster than other leading currencies such as the euro or the yen.

42 sats \ 7 replies \ @Satosora 17 Jun

Well, they are going to be doing the brics thing soon. When will that get announced?

20 sats \ 6 replies \ @TomK OP 17 Jun

you shouldn't expect them to proclaim their own currency at this point. but they have been hinting for months that there will be joint bilateral actions, a settlement system that will include gold etc etc. i think the direction is clear, a further de-dollarization ofthe brics

58 sats \ 5 replies \ @Satosora 17 Jun freebie

They will be backing up their own currency with gold, not brics. China will put in 10 billion USD, or the equivalent in their currency. So in fact, brics isnt backed up by gold...

52 sats \ 4 replies \ @riberet19 17 Jun

I've been hearing about the BRICS for so long... I wonder when it will be a reality