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Chinese GDP grows at 6.9%, other data mildly positive - RBS

FXStreet (Delhi) – Sanjay Mathur, Head of Economics Research at RBS, judge today’s Chinese data releases to be mildly positive (Apart from industrial production and fixed investment) as the Q3 2015 GDP at 6.9% yoy (1.8% qoq) was moderately above the upper end of Bloomberg consensus forecasts.

Key Quotes

“From the data it is clear that the services sector is emerging as the dominant driver of growth. The industrial sector has remained weak but even so, it does appear that the stimulus measures are working their way through. If the September improvement in exports continues, the sector may be close to a bottom.”

“Consumption data are not available as yet, but the robust trend in retail sales suggests that it is holding up reasonably well.”

“The positive tone of the GDP numbers if backed by greater commitment to economic reforms at the forthcoming Plenum could provide the Chinese authorities scope to allow greater flexibility in the exchange rate regime. A positive macro backdrop will also help to attain flexibility in a non-disruptive manner.”

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