China released a raft of economic data over the weekend, and most of it was weak
BI Australia
Chinese industrial production, retail sales and urban fixed asset investment figures were released over the weekend with all bar retail sales disappointing to the downside.
From a year earlier industrial production increased by 6.1%, higher than the 6.0% pace of July but below expectations for an expansion of 6.4%.
Disruptions caused by the massive explosion at the Tianjin port midway through the month, along with factory closures prior to the September 3 Victory Day parade to ensure blue skies for the event, are largely believed to have been responsible for the downside miss.
Elsewhere urban fixed asset investment – essentially urban infrastructure spending – grew by 10.9% in the year to August. The figure was below the 11.2% pace of July and expectations for a deceleration to 11.1% and marked the slowest annual increase in investment since December 2000.
On the other side of the ledger, retail sales topped expectations, increasing by 10.8% from levels of a year earlier. The figure was higher than the 10.5% pace of July, also the level eyed for August.
Whether due to the mixed nature of the report, the fact it portrays what the Chinese government is attempting to implement – greater levels of household consumption to offset weakening industrial activity – or the widely-held belief that most Chinese data is spurious in nature, the market reaction to the news in early Asian trade has been near non-existent on Monday.
Clearly this data dump – once a noted market mover – has lost its market potency over recent years.
Read the original article on Business Insider Australia. Copyright 2015.
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