by Chris Becker
Continuing the Chinese authorities tradition of releasing important data on the weekend (oh and suppressing democracy movements, this time in Hong Kong), the industrial profits print for August showed a surprising 0.6% fall – the first such result in two years.
This comes off a very big base this time last year (following record stimulus) and explains clearly the loss of momentum within the economy if the first eight months of the year.
The National Bureau of Statistics said:
Profits were dragged by the slowdown in industrial production, weak demand and falling factory prices, rising costs and slower investment returns.
On that last stat, returns were at only 3.2% year-on-year or essentially zero in real terms – no surprise given the fall in house prices.
Wednesday this week will see the release of the official PMI survey for September (which is hovering at 50.5) and this result is sure to subtract from the very closely watched print and likely impact the commodity complex, and hence the AUD.
Still no news on hair-trigger style stimulus from the PBOC on any “disappointing” economic data print.
The restructuring continues.