China’s leading indicators

Here’s a heads up about the important Chinese data that is out around lunchtime today.  Amongst the raft of data to be released is the GDP data. Chinese growth is increasingly important to everyone on the planet as our beloved Central Bank Governor pointed out in New York two nights ago. The chart below shows the relationship between the Chinese Leading Indicator and GDP with the little pink line our guess (that’s all it is not a forecast) of the probable deceleration of the GDP data to be released.

This is important for us here in Australia obvioulsy because of the importance of the Chinese growth engine to Australian growth and interestingly Chinese growth also has a really strong impact on German exports. China is clearly trying to slow their economy and the evidence is that its working.

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      • The_Mainlander

        try clicking on the graph image Lorax 😉 you will get it to create a larger pop-up.

        You know how to left click right?!



  1. H&H,
    Nothing wrong with the size of the chart, only would of preferred it upside-down. My stocks are all heading in the wrong direction today.

  2. Deus Forex Machina

    Update…the Data Sword is out but wanted me to post the fact that Chinese Growth was stronger than the market expected coming in at 9.7% yoy with inflation also higher than nthe market expected with a rise of 5.4% yoy.
    Data Sword also noted that GDP was at the upper end of our guessing competition range but inflation has accelaerated as expected.
    Expect the Chinese to have to tighten both Resereve requirments and also official interest rates again soon.