The debate over the veracity of data from China has been going on (and on) for a long time.
The questions over Monday's are thus nothing new.
Data (and more from the day) is here ICYMI:
- China data dump - analyst response coming through - "generally stronger numbers"
- China Industrial production (June): 6.3% y/y (expected 5.2%)
- China June Retail Sales 9.8% y/y (vs. expected 8.5%)
- China June 2019 Fixed Assets (excluding rural) investment YTD 5.8% y/y (exp 5.6%)
- China GDP data for Q2 6.2% y/y (expected 6.2%)
The Wall Street Journal (gated) have a piece up on the data, that's where the headline is from. Some of the major points in the article:
It does seem like easier fiscal and monetary policy are starting to help … helping revive infrastructure investment
- could help offset the impact of a cooling property market and keep producer price inflation from going deeply negative, which is critical to avoiding financial problems for heavily indebted industrial firms and banks
On the strong retail sales:
- reflected a jump in spending on cars
- almost certainly due to buyers taking advantage of discounts offered by car makers to clear inventory ahead of stricter emissions standards
The thing about getting too downcast on China economy comes right at the end of the article … its something to keep top of mind ...bolding is mine:
- China's economy still needs more help. Investors should expect stronger policy support in the months ahead.