China GDP expected at 6.9% while downside risks to IP exists - TDS

FXStreet (Delhi) – Research Team at TDS, shares the consensus forecast of 6.9%, but with services and consumption underrepresented in the high-frequency space, we see modest upside, with a seven-handle quite possible if growth skeptics continue to think the Chinese economy is only about industrial production and housing.

Key Quotes

“We see small downside risks to IP. Caixin was soft and better predicted this sector's decline compared with the official PMI. But the Chinese economy is s lowly rotating, and it’s the retail s ales number that s hould be looked at more closely. Here, we expect the number to come out a touch higher than consensus as wealthier households increasingly prefer to consume services.”