Industrial production in China rose by 9,7%
Chinese Economy is still growing... the industrial production rose slightly more than expected in July in China, 9.7%, while the increase in retail sales, 13.2%, slightly below expectations, according to official data released Friday. Economists had expected 9.0% and 13.5% respectively.
Investment in ChinaThe investment in fixed assets, an important engine of the economy, rose 20.1% in the first seven months of the year, against a consensus of 20.0%. The consumer prices rose 2.7% in July as in June, but those at the factory gates fell further and for the seventeenth consecutive month, suggesting an unchanged monetary policy while Beijing task to counter a slowdown at work for over two years. The producer prices fell 2.3% from a year ago, against a decline of 2.7%.
Economists on average had expected a rise of 2.8% in consumer prices and a 2.2% decline in producer prices.
"I remain in favor of a rate cut to help businesses in a context of persistent deflation in producer prices," said Chen an economist for China at Mizuho Securities.
"But the central bank has a very orthodox line on inflation (...) and she is concerned that a rate cut be interpreted by financial market participants as a sign of economic recovery"