CHINA-ECONOMY: STATE STATISTICAL BUREAU RELEASES FIGURES FOR SEPTEMBER
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The State Statistical Bureau released monthly economic data for September which shows an economy that continued to decelerate. Growth of industrial production slipped to 5.8% y/y – down from 6.1% in August and the lowest print since October 2015. Automobile and mobile phone production contracted in the month. Investment growth accelerated to 6.1% y/y – from 4.6% y/y in August. That was driven exclusively by a massive jump in manufacturing investment – up to 16.3% y/y from 8.7% in August. There is lack of clarity on what drove the manufacturing investment surge – the government claims it was high-tech manufacturing. Meanwhile, infrastructure spending remained in negative territory – contracting for the third consecutive month – and property spending slowed for the third consecutive month. Retail sales growth edged up to 9.2% y/y – from 9% in August – but the increase was largely driven by food, drink, and everyday items. Food items, in particular, saw significant price increases last month, so this is an inflation story – not an increase in the volume of purchases.
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