There was good news for the world’s second largest economy today with the release of two lots of positive data.
Yesterday China’s leaders committed themselves to double per-capita income in the 10 years through 2020, and with those leaders preparing for this week’s transition of power in Beijing these optimistic statistics have come at an opportune time.
According to the National Bureau of Statistics, retail sales in October climbed from September’s figure of 14.2 per cent to 14.5 per cent whilst industrial production increased by 9.6 per cent in October from a year earlier, beating economist’s expectations by 0.2 per cent.
There has also been a slow in China’s consumer-price gains. Notably, food prices rose by 0.7 per cent less in October than they did in September.
The PBOC stated that inflation is ‘currently stable’ having eased to its slowest pace for nearly three years.
China economist with Societe Generale SA, Yao Wei, asserted that; ‘Inflation remained comfortably low, but, given more signs of growth recovery, the Peoples Bank of China will probably stay on the sideline.’
Other industry experts have similarly expressed the belief that the recent signs of economic recovery could lead China to continue its halt in monetary easing for the foreseeable future, particularly as these latest results indicate that the government has been successful in bolstering growth without inciting a price rebound.
A chief Greater China economist with Bank of America Corp said of the news: ‘The key question for investors is whether China’s economic growth has truly bottomed and is recovering, [the] answer is firmly yes’.
Whether China can continue this success and emerge stronger from the seven-quarter slowdown depends very much on the results of the Chinese leader’s once-a-decade game of musical chairs.
As of 11:00am
The Pound to Euro exchange rate is currently trading at 1.2549
The Pound to US Dollar exchange rate is currently trading at 1.5963
The Pound to Australian Dollar exchange rate is currently trading at 1.5329
The Euro to US Dollar exchange rate is currently trading at 1.2719
The Euro to Pound exchange rate is currently trading at 0.7974
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