The Chinese economy was motoring along fine in August. Growth internals released today were as expected with a modest rebound from July floods. Industrial production was 6.3% and is trending solidly sideways. Likewise for retail at 10.6%. Fixed-asset investment took a breather from it decline posting unchanged at 8.1%:
Real estate construction starts growth continues to slow steadily down to 12.2% from 24% at the March peak. I still think we’ll end the year near to flat:
Growth in floor area under construction also continues to fall, down -0.2% to 4.6% year to date:
Chinese steel output rebounded in the month to 68.57mt. I expect it to keep falling though not so steeply as last year. Year to date production is now down -1% so a flat or slightly up end of year result looks likely:
Cement output also firmed in the month to 21.8mt, virtually flat on the year:
Stimulus still working its way through the pipe in August.
