I know, everybody loves the Apocalypse. But sadly, the Chinese economy is not heading for a hard landing, with second quarter GDP growth coming in at 7.6 percent, far above the 7 percent and under considered by economists to constitute the start of a China crash. But while China’s economy is firing on, let’s say, all two cylinders instead of all four, there’s a mix of good news and bad news regarding the world’s No. 2 economy. The headline macro data released Friday showed the second quarter growth was less than the first, which came in at 8.1 percent. That was to be expected, though the numbers were a little under consensus estimates of 7.7 percent for 2Q. Then there’s China’s industrial production (IP) figures. Growth slowed a smidgen to 9.5 percent in June from 9.6 percent in May, lower than the market consensus yet again, which was 9.8 percent. Fixed asset investment (FAI) growth for the first half rose surprisingly to 20.4 percent year over year from 20.1 percent in the first five months, as the Chinese government does what it can to stimulate the economy as Europe’s woes continue to pack a punch on China exporters.... Continue to read.
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