Mmmm, yeees ….
The weekend data wasn’t good … as I posted (bolding mine … err, all of it is mine
):
Mike had some of this earlier, here (including a very useful link to Reuters on the data)
Fixed Assets Ex Rural YTD y/y for August, +16.5%
- expected 16.9%, prior was 17.0%
Retail Sales YTD y/y for August,+12.1%
- expected 12.2%, prior was 12.1%
Retail Sales y/y for August,+11.9%
- expected 12.1%, prior was 12.2%
Industrial Production YTD y/y for August,+8.5%
- expected 8.8%, prior was 8.8%
Industrial Production y/y for August, 6.9%
- expected 8.8%, prior was 9.0%
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Adam had this: China reluctant to cut reserve requirement – MNI
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Now, from the Wall Street Journal overnight … (gated) … China’s Economic Slump Complicates Beijing’s Restructuring Plans
It goes on:
- Economists said Beijing must decide in coming weeks whether to hang tough or, should economic momentum weaken further, opt for more dramatic pro-growth measures.
- These might include a general interest-rate cut or a broad-based reduction in the capital that banks keep on deposit with monetary authorities.
- “There’s a bottom level they won’t tolerate,” said Julian Evans-Pritchard, an economist with Capital Economics. “But we haven’t hit it yet.”
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I can’t help but think such data as the IP over the weekend, should it continue like that, will prompt wider stimulus.
