China July Data Expected to Stay Sluggish as LPR Holds
ING’s Lynn Song expects China’s July activity data to show continued weak momentum, with retail sales at 1.7% year-on-year and fixed asset investment contracting further.
ING economist Lynn Song sees little improvement in China’s July activity figures. The bank expects retail sales to grow only 1.7% year-on-year, while fixed asset investment is forecast to contract further. Industrial production is also seen as relatively subdued, according to the note.
The People’s Bank of China left the loan prime rate unchanged, consistent with a cautious policy stance amid soft domestic demand. The combination of weak consumption and still-soft investment points to continued sluggish momentum in the world’s second-largest economy.
Source: FXStreet Forex News