Chinese growth slowed to its weakest pace in nearly three decades in the second quarter with the US-China trade war and weakening global demand weighing on the world's second-biggest economy, official data showed Monday.
Industrial output climbed 6.3 percent from a year earlier, data from the National Bureau of Statistics showed, picking up from May's 17-year low and surpassing a forecast for 5.2 percent growth.
The GDP figures are within the government's target range of 6.0-6.5 percent for the whole year, down from the 6.6 percent growth China posted in 2018.
A fiscal stimulus plan including about two trillion yuan (US$291 billion) of tax cuts is slowly feeding through into the economy. Industrial output rose 6.3 per cent in June, from 5.0 per cent in May, which was the slowest increase since 2002.
On Friday, June trade was in the spotlight because the U.S. and China recently reignited negotiations that could lead to a new trade agreement.
In response to the data, the Australian dollar, which is viewed by investors as a proxy to the Chinese economy rose.
Meanwhile, the U.S. Bureau of Safety and Environmental Enforcement said Sunday that Tropical Storm Barry has slashed 73% of crude oil production in the U.S. -regulated areas of the Gulf of Mexico.
Retail sales, which include spending by governments, businesses and households, grew 9.8% (link in Chinese) year-on-year in June, up significantly from 8.6% growth in the month before.Читайте также: Barry dumping more rain as flood worries continue
Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4 per cent, adding to expectations that Beijing needs to do more to boost consumption and investment and restore business confidence.
Weaker Chinese activity carries global repercussions.
Imported goods from Vietnam have risen more than 30 per cent this year from a year ago, Commerce Department data show. "In the domestic market, whether the rebound in retail sales growth is sustainable is still uncertain".
"Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce", Tom Rafferty, principal economist for China at The Economist Intelligence Unit, told CNBA. She said in a report Friday that suggests the economy "would be deteriorating" without stimulus.
China, for its part, has since said it's considering buying more US soybeans, corn and pork as a cooperative gesture but that total volumes will depend on the progress of the trade talks.
"Concerns over global growth slowdown and the persistence of U.S".
Fixed-asset investment growth was 5.8 percent in the first six months, compared with 6.3 percent in the first quarter, the NBS said.
Auto sales, reported earlier, fell 7.8 percent in June, extending a yearlong contraction in the industry's biggest market. That has shored up growth but set back efforts to reduce reliance on investment, which has pushed debt to levels that prompted credit rating agencies to cut China's credit rating for government borrowing. The dollar index fell for three days in a row as markets fully priced in the chance of a 25-basis-point (bps) cut to US interest rates. While China has taken US$16 billion "off the table" by stopping its purchases of American agriculture, he said, the United States has "taken in much, much more - many times that in tariffs".При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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