MNI 5 Things: China Ind Output Slows; GDP In Line; FAI Cools

     BEIJING (MNI) - MNI highlights five things on China's Q2 GDP released on

Monday by the National Bureau of Statistics (NBS):

     - Industrial output growth was the biggest disappointment, slowing to 6.0%

in June, lower than the 6.5% projected in a survey by MNI and 6.8% recorded in

May. Growth was the lowest since 6.0% in March. 

     - Q2 GDP was 6.7%, in line with expectations, down from 6.8% in 1Q and was

the slowest since the 6.7% recorded in the third quarter in 2016. China in March

set GDP target growth for the whole year at 6.5%. In further sign of a slowdown,

surveyed urban unemployment rate rose to 4.8% in June, matching that May, higher

than the 4.5% target for the whole year.

     - Retail sales in June rose 9.0% y/y, up from 8.5% in May, but still short

of 9.4% recorded in April. In the first quarter, it grew 9.4% to more than CNY18

trillion. A NBS spokesman said consumption is dampened by slowing auto sales,

though he expects further easing on imports may stimulate spending in H2.

     - Fixed-asset investment (FAI) in Q2 slowed to 6.0% from 6.1% in Q1. On a

monthly basis it accelerated to 0.48% in June from 0.47% in May. It was the

slowest Q2 FAI growth in history since the data started to be compiled in 1992.

But the NBS stressed the investment will remain growth at a fast pace, as the

infrastructural investment is expected to be stable due to some illegal projects

will be launched.  

     - Property investment slowed to 9.7% in 1H from 10.2% in Jan-May, as the

government vowed not to ease restrictions placed on the sector prone to

speculation. However, growth may not slow further as NBS spokesman said real

estate investment in 2H will keep a "relatively fast" growth.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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