China’s July data dump is in and this an economy going nowhere fast.
Year on year Industrial Production came in at 9.2%. That is down from growth of 9.5% in June and a big miss to consensus which saw 9.7%.
The Fixed Asset Investment component came in at 20.4% year on year, the same as last month and a miss of 0.2% on consensus.
Retails sales did better only falling 0.2% to year on year growth of 14.2% and well above consensus of 13.5%.
Combine these with this morning’s steeply deflationary PPI and I conclude that this economy will not be so easy to turn around.
The dollar, of course, ignored it all, and so did stocks by and large. In this environment, the persistent weakness in iron ore makes perfect sense and on these numbers is not over.