• China 2Q19 GDP growth at 6.2% yoy
• Industrial production jumped sharply

• Retail sales accelerated in June

• Investment remained stable

• Growth should decelerate further as more stimulus expected

China released a slew of official economic data, including the widely anticipated gross domestic product figure.

China’s economic growth slowed to 6.2% in the second quarter from a year earlier, the weakest in at least 27 years, as demand at home and abroad faltered as the United States ratcheted up trade pressure. However, stronger-than-expected gains in June factory output and retail sales offered some signs of stabilization.

China's economy slowed to 6.2% yoy

The Chinese economy advanced 6.2% yoy in 2Q19, slowing from a 6.4% expansion in 1Q19. It was the lowest GDP growth rate since the first quarter 1992, amid persistent trade dispute with the US, weakening global demand and alarming offbalance-sheet borrowings by local governments. On a quarterly basis, the economy grew by 1.6% qoq in 2Q19, up from 1.4% in 1Q19. It was the strongest pace of quarterly expansion since the September quarter 2018. For the first half of the year, China's economy expanded 6.3% percent.

The value added of the primary industry was up by 3.3% yoy faster than 2.7% in 1Q19. On the other hand, growth in the secondary industry slowed to 5.6% in 2Q19 from 6.1% in 1Q19 whilst growth in the tertiary industry was at 7.0%, similar to the growth in 1Q19.

Source: BIMB Securities Research - 15 Jul 2019