China’s economy is still searching for a bottom

Summary

Last week China’s government announced its GDP figures in the second quarter as well as a batch of activities indicators in June such as industrial production, retail sales and fix-asset investment. These headline figures still look fine.

Key points

• Key points:
• In particular, the Q2 GDP growth moderated to 6.2% y/y from 6.4% y/y in Q1.
• Although the reading is the lowest quarterly one since 1992, the pace of growth slowdown appears to be mild, in particular taking into account the unexpected escalation of trade tensions with the US in May.

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