FOREX TradingCharts.com

Financial News: China Shows Signs Of Reeling Under Trade War,

China Shows Signs Of Reeling Under Trade War, Weaker Demand Pressures

09/16/2019 - 06:33:00 (RTTNews)

(RTTNews) - China's industrial production grew at the weakest pace in 17-and-a-half years in August and the retail sales expansion slowed unexpectedly, while the government signaled that it will be hard to maintain growth above 6 percent, as the economy tries to cope with weakening global demand and the adverse effects of a trade war with the United States. Industrial production increased 4.4 percent year-on-year, which was the weakest pace since February 2002, preliminary figures from the National Bureau of Statistics showed on Monday. The latest pace of growth in production was the weakest since February 2002. Economists had expected the rate to improve to 5.2 percent from 4.8 percent seen in July.

Among the main categories, output in manufacturing grew 4.3 percent and that in mining industry rose 3.7 percent. Utilities production increased 5.9 percent. Retail sales rose 7.5 percent annually in August after a 7.6 percent increase in July, separate data from NBS showed. Economists had expected sales to grow faster at 7.9 percent. In the second quarter, China's economy expanded at the slowest pace in 27 years. GDP advanced 6.2 percent from previous year.

In an interview to Russia's state-run news agency TASS, published on Sunday, China's Premier Li Keqiang said the Chinese economy continues its sustainable expansion. However, maintaining accelerated growth rates of more than six percent amid the uncertain global situation is quite a difficult task for a big economy like China, he added. There has been hardly any let up in the trade tension between China and the U.S. The situation deteriorated significantly in August with the U.S. President Donald Trump proposing new tariffs on the remaining $300 billion Chinese goods. Intensifying the trade tensions, Trump branded China a "currency manipulator" early August after the Chinese yuan fell below the psychologically significant value of seven against the U.S. dollar for the first time since 2008 on August 5.

Subsequently, the US Treasury assigned the currency manipulator status to China for the first time since 1994.

On September 1, previously announced tariffs on Chinese imports of around $112 billion took effect, in addition to the levy on the $250 billion worth of imports. The Trump administration has also threatened additional tariffs on Chinese goods from October 1 and December 15. China retaliated by imposing tariffs on some US imports and threatened more. On September 7, the People's Bank of China trimmed its reserve requirement ratio for a third time thus far this year to boost lending to support the slowing economy. Economists also expect the PBoC to slash interest rates, as early as this week. In other data released on Monday, fixed asset investment grew 5.5 percent year-on-year in the January to August period, which was slower than the 5.6 percent analysts had forecast. Property investment increased 10.5 percent in the first eight months of the year versus 10.6 percent in the January to July period. The national urban unemployment rate was 5.2 percent in August, down from 5.3 percent in July. The global uncertainties have increased significantly and the structural contradictions in the domestic economy remain prominent, increasing the downward pressure on the economy, the NBS said. "The August data is very weak even with massive infrastructure investment support," ING economist Iris Pang said.

"Even if there is continuous fiscal stimulus, the damage from the trade war will continue to be significant, and will hurt exporters further," she added.

The economist expects further stimulus from the government. ING lowered its Chinese growth forecast for this year to 6 percent from 6.3 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Belgium Consumer Confidence Improves In October (05 hr(s), 11 min(s), 46 sec(s) ago)
(RTTNews) - Belgium's consumer confidence rose for the first time in three months in October, ...Full Story»

Germany May Have Entered Recession In Q3: Bundesbank (06 hr(s), 15 min(s), 46 sec(s) ago)
(RTTNews) - Germany might have entered a technical recession in the third quarter, the Bundesbank ...Full Story»

Latvia Producer Price Inflation Rises In September (06 hr(s), 46 min(s), 46 sec(s) ago)
(RTTNews) - Latvia's producer price inflation rose in September for the first time in nearly a ...Full Story»

Slovenia Output Prices Rise Further In September (06 hr(s), 54 min(s), 46 sec(s) ago)
(RTTNews) - Slovenia's output price inflation rose in September, figures from the Statistical ...Full Story»

Croatia Jobless Rate Falls In September (07 hr(s), 43 min(s), 46 sec(s) ago)
(RTTNews) - Croatia's jobless rate fell marginally in September after remaining unchanged in t ...Full Story»

Swiss Money Supply Growth Weakest In 11 Months (07 hr(s), 44 min(s), 46 sec(s) ago)
(RTTNews) - Switzerland's money supply grew at the slowest pace in nearly a year in September, ...Full Story»

Poland Retail Sales Rise In September (07 hr(s), 53 min(s), 46 sec(s) ago)
(RTTNews) - Poland's retail sales grew in September from last year, figures from Statistics Po ...Full Story»

UK Household Finances Remain Under Pressure (07 hr(s), 56 min(s), 46 sec(s) ago)
(RTTNews) - UK households' perception of financial wellbeing remained negative in October but ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Belgium Consumer Confidence Improves In October

10/21/2019 - 09:40 AM (RTTNews)
(RTTNews) - Belgium's consumer confidence rose for the first time in three months in October, ...Full Story>>

Germany May Have Entered Recession In Q3: Bundesbank

10/21/2019 - 08:36 AM (RTTNews)
(RTTNews) - Germany might have entered a technical recession in the third quarter, the Bundesbank ...Full Story>>

Latvia Producer Price Inflation Rises In September

10/21/2019 - 08:05 AM (RTTNews)
(RTTNews) - Latvia's producer price inflation rose in September for the first time in nearly a ...Full Story>>

Slovenia Output Prices Rise Further In September

10/21/2019 - 07:57 AM (RTTNews)
(RTTNews) - Slovenia's output price inflation rose in September, figures from the Statistical ...Full Story>>

Croatia Jobless Rate Falls In September

10/21/2019 - 07:08 AM (RTTNews)
(RTTNews) - Croatia's jobless rate fell marginally in September after remaining unchanged in t ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.