Photo: AP Photos/Andy Wong
This has definitely been a big theme of the last month or two: The idea that the Chinese economy was no longer hard landing.A fresh batch of data out overnight helps confirm that idea.
Via MarketWatch: Retail sales grew 14.5% YOY vs. expectations of 14%. Fixed Asset Investment grew 20.7 (a hair ahead of estimates). Industrial output grew 9.6%, ahead of 9.4%.
As Kit Juckes of SocGen puts it: “The Chinese data do not mean that an economic rebound is coming, or that growth will settle at 7 ½% – the new trend rate will be slower than that. As George Magnus put it on radio 4 this morning, this is the end of extrapolation for China’s growth story. However, it does reinforce the fact that the “tail risk” of a Chinese hard landing is fading.”
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