China has released its May data and the news is boom! Not. The data is so distorted by COVD base effects that it’s still very difficult to read. Simple year-on-year and year-to-date comparisons looks outrageously good. Year-to-date growth to the end of May is 17.8% for industrial production, 25.7% for fixed asset investment and 15.4% for retail sales:
But if we use 2019 comparisons, the year-to-date numbers fall very heavily to 4.2% for fixed-asset investment, industrial production 7% and retail sales of 4.3%.
Turning to segments, the all-important real state continues its slowing trends. Sales are still strong but growth is falling fast:
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