Data is here: China data: Industrial production +6.4% y/y (expected +7.1%)
And: More from China on industrial output
Via Bloomberg;
- "The second half of this year is sure to see a mild economic slowdown as the side-effects of the deleveraging campaign start to kick in," said Tommy Xie, an economist at OCBC Bank in Singapore. "Borrowing costs have been pushed up, as we've seen in the second quarter, and it will be more pronounced in the rest of the year. But the possibility of a sharp drop is unlikely.
- "All three indicators falling from strong June readings is "an initial signal of economic slowdown in the second half," said Ding Shuang, chief China economist at Standard Chartered Plc in Hong Kong. "It doesn't necessarily indicate a big shift in policies, since the readings aren't very bad, but slight adjustments are possible, especially in monetary policy."
And, Reuters:
- Despite the softer-than-expected reading, China's manufacturing activity still appeared to be supported by a year-long construction boom. Beijing has poured money into infrastructure projects that have fueled demand for products from construction equipment to building materials from cement to steel.
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Although the data came in at a series of disappointments, the slow down is mild.
