14 Mar 2014
Flash: Chinese GDP to slow to 7.5%? - Danske Bank
FXStreet (Barcelona) - Anders Møller Lumholtz, Senior Analyst at Danske Bank notes that yesterday’s disappointing Chinese industrial production and fixed investment data points towards GDP growth slowing to 7.5% y/y in Q1 (possibly even lower) – from 7.7% y/y in Q4.
Key Quotes
“Weak data suggest GDP growth could drop below 7.5% growth target as soon as Q1 US retail sales disappointed again in February showing very sluggish consumption over the past four months.”
“While part of the slowdown is likely due to bad weather, we believe that a rise in gasoline prices is also contributing to weaker consumption. French inflation data were in focus yesterday as well. French HICP increased 1.1% y/y in February from 0.8% in January.”
“Despite being above consensus expectations of a 1.0% increase, the reading implies that final euro inflation will most likely be revised down to 0.7% from 0.8% in the first release.”
Key Quotes
“Weak data suggest GDP growth could drop below 7.5% growth target as soon as Q1 US retail sales disappointed again in February showing very sluggish consumption over the past four months.”
“While part of the slowdown is likely due to bad weather, we believe that a rise in gasoline prices is also contributing to weaker consumption. French inflation data were in focus yesterday as well. French HICP increased 1.1% y/y in February from 0.8% in January.”
“Despite being above consensus expectations of a 1.0% increase, the reading implies that final euro inflation will most likely be revised down to 0.7% from 0.8% in the first release.”