FAST FIVE: China Factory Output Weakest In 17 Years, Everything Missed
Ahead of today's data, broadly speaking, macro data globally has been weak, but in China, recent credit growth numbers slumped and steel production slowed, suggesting graver concerns.
China Industrial Production BIG MISS +4.8% (+6.0% exp, +6.3% prior) China Retail Sales BIG MISS +7.6% (+8.6% exp, +9.8% prior) China Fixed Asset Investment MISS +5.7% (+5.8% exp, +5.8% prior) China Property Investment MISS +10.6% (+10.9% prior) China Surveyed Jobless Rate MISS +5.3% (+6.0% exp, +6.3% prior) Now all that is left is to figure out if bad news is good news, or not.
Some notables include: Car sales weighed on retail Jobless rise is significant And Factory Output slowed to its weakest since 2002.
So with inflation spiking, currency crashing, social-unrest; will the PBOC flood the nation with cash to ensure happiness at October's CCP Anniversary.
Chen Yuan, former deputy governor of PBOC warned that “the trade war is evolving into a financial war and a currency war.” As goes China, so goes the world.