China Shrugs Off Slower GDP, Beats June Industrial Expectations
The first few hours of the day focused on China's slower GDP in 27 years of 6.2 percent but the country quickly upturned the news with more data indicating that its industrial output for the month of June exceeded analyst expectations.
According to Reuters, previous polls revealed that analysts believe China's June industrial data would grow by 5.2 percent. The world's second-largest economy ultimately stomped on these figures with a 6.3 percent growth in the sector for June.
In May, China's 5.0 percent industrial output expansion was its lowest in 17 years. Despite the news, the country's GDP slowed down for the second quarter of this year, analysts are expecting a bounce back as industries rally to support the economy.
Furthermore, private investments on fixed assets saw a hike of 5.7 percent and retail sales beat down analyst forecasts of 8.3 percent to post sales of 9.8 percent for the month of June. Industry experts previously said they were expecting sales to decline amid the China-U.S. trade war.
China and the U.S. have been embroiled in a trade war for over a year now ever since U.S. President Donald Trump slapped the first set of tariffs on billions of Chinese products. While some economists feared the possibility of a global recession, the Asian nation continues to overtake expectations in some segments.
The GDP data did disappoint many economists but it was fairly expected by some. The China-U.S. trade war has dealt with both countries some beatings, especially in manufacturing and industrial outputs.
On the other hand, China's industrial segments appear to be more resilient at this point. For the first half of this year's China's overall industrial output grew by six percent, the National Bureau of Statistics revealed.
Despite the numbers being lower than last year's H1 data, it is worth noting that June figures indicate China is not allowing the trade war to completely tear its economy down. Instead, the nation is rising above challenges and moving forward despite the weight of White House tariffs.
Among the sectors that propelled growth in China's industrial output in June is the light industry that involves the production of batteries, bicycles, and batteries. In fact, the country has over 100 light industry products that rank first in the world.
Since 2010, China's value-added manufacturing has overtaken the United States. For the last nine years, the country retained its position as the world's biggest nation for manufacturing segments.
Aside from light products, Chinese auto production and manufacturing of high-tech equipment and devices such as mobile phones, televisions, and computers increased over the last two years.