China: Weak economic indicators - TDS

In view of analysts at TD Securities, Chinese data was not very promising today with IP coming in below expectations (5.0% y/y, market 5.4% y/y) dropping to its weakest since 2002, as indicated by weak PMIs and likely as a result of tariffs and growing trade pressures.

Key Quotes

“One less working day in May compared to last May will also have impacted the data. Fixed asset investment was also soft, dropping to its lowest since Sep 18 (5.6% y/y, 6.1% y/y), again a disappointment relative to expectations.”

“Retail sales help up better (8.6% y/y, 8.1% y/y), benefiting from the longer May day holiday and appears to be bottoming out around an 8-9% y/y range.”