China: Weak tone to activity data - TDS

In view of analysts at TDS, it was a weak tone of Chinese activity data for August as retail sales surged by 10.1%/yr against a prior reading of 10.4%, while industrial production also weakened to 6.0%/yr from a prior 6.4%/yr.

Key Quotes

“Fixed asset investment slowed as well, down 0.5 pts to +7.8%/yr. However, the output by industry showed that despite the smaller output by industries such as ferrous metal smelting & pressing (2.1%/yr to 0.9%), there was an increase in the manufacturing of higher value goods such as telecommunication and computers (11.8%/yr to 13.0%).”