BOE seen raising rates by 50 bps to 2.25% in September – Reuters poll


From cnbc.com|8 hr ago|4 comments

China reported data for July that came in well below expectations. Retail sales grew by 2.7% in July from a year ago, the National Bureau of Statistics said Monday. That’s well below the 5% growth forecast by a Reuters poll, and down from growth of 3.1% in June. Industrial production rose by 3.8%, also missing expectations for 4.6% growth and a drop from the prior month’s 3.9% increase. Fixed asset investment for the first seven months of the year rose by 5.7% from a year ago, missing expectations for 6.2% growth. Investment into real estate fell at a faster pace in July than June, while investment into manufacturing slowed its pace of growth. Investment into infrastructure rose at a slightly faster pace in July than in June. Fixed asset investment data is only released on a year-to-date basis. The unemployment rate among China’s youth, ages 16 to 24, was a high 19.9%. The unemployment rate across all ages in cities was 5.4%. Analyst forecasts for July were projected to show a pickup in economic activity from June, as China put the worst of this year’s Covid-related lockdowns behind it, especially in the metropolis of Shanghai. Exports remained robust last month, surging by 18% year-on-year in U.S. dollar terms despite growing concerns of falling global demand. Imports lagged, climbing by just 2.3% in July from a year earliNational Economy Sustained the Momentum of Recovery in July In July, faced with increasingly complicated and challenging international environment as well as frequent and sporadic domestic outbreaks of Covid-19 pandemic, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments adhered to the general principle of pursuing progress while maintaining stability, conscientiously implemented the decisions and arrangements made by the CPC Central Committee and the State Council, effectively coordinated the Covid-19 prevention and control and the economic and social development, and carried out a package of policies and measures to stabilize the economy. As a result, production and supply continued to recover, employment and prices were generally stable, foreign trade maintained the good momentum of growth, and people’s livelihood was strongly and effectively safeguarded. The national economy sustained the momentum of recovery. 1. Industrial Production Grew Steadily and Equipment Manufacturing as well as High-Tech Manufacturing Grew Fast. In July, the total value added of the industrial enterprises above the designated size grew by 3.8 percent year on year, down by 0.1 percentage points over that of the previous month; the month-on-month growth was 0.38 percent. In terms of sectors, the value added of mining went up by 8.1 percent, manufacturing up by 2.7 percent and the production and supply of electricity, thermal power, gas and water up by 9.5 percent. The value added of equipment manufacturing and high-tech manufacturing went up by 8.4 percent and 5.9 percent year on year respectively, or 4.6 percentage points and 2.1 percentage points faster than that of the total value added of the industrial enterprises above the designated size. An analysis by types of ownership showed that the value added of state holding enterprises was up by 5.4 percent year on year; that of share-holding enterprises was up by 4.4 percent; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 1.9 percent; and that of private enterprises was up by 1.5 percent. In term of products, the production of green and smart products like new-energy vehicles and solar cells grew by 112.7 percent and 33.9 percent year on year respectively. In the first seven months, the total value added of the industrial enterprises above the designated size went up by 3.5 percent year on year, 0.1 percentage points faster than that of the first six months. In July, the Manufacturing Purchasing Managers’ Index stood at 49.0 percent; the Production and Operation Expectation Index was 52.0 percent. In the first six months, the total profits made by industrial enterprises above the designated size stood at 4,270.2 billion yuan, up by 1.0 percent year on year. 2. Service Sector Continued to Recover and Modern Service Industries Witnessed Good Momentum of Growth. In July, the Index of Services Production grew by 0.6 percent year on year, 0.7 percentage points lower than that of the previous month. Specifically, that of information transmission, software and information technology services and that of financial intermediation grew by 10.3 percent and 4.9 percent respectively. In the first seven months, the Index of Services Production dropped by 0.3 percent year on year, 0.1 percentage points slower than that of the first six months. In the first six months, the business revenue of service enterprises above the designated size went up by 4.4 pe tweet at 10:08pm: CHINA’S 10-YEAR BOND YIELD HAS FALLEN TO ITS LOWEST LEVEL SINCE MAY 2020.AUD/USD retreats towards 0.7100 on downbeat China data AUD/USD retreats towards 0.7100, down 0.08% intraday around 0.7120 by the press time, as China’s softer-than-expected data dump joins the cautious mood in the market during Monday’s Asian session. The Aussie pair’s struggle could also be linked to the anxiety ahead of the Minutes of the latest monetary policy meeting from the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed). China’s Retail Sales eased to 2.7% versus 5.0% expected and 3.1% prior whereas Industrial Production (IP) edged lower to 3.8% from 3.9% prior and 4.6% market forecasts. Earlier in the day, the People’s Bank of China (PBOC) cut the one-year medium-term lending facility (MLF) rates by 10 basis points (bps) and tried to push back the bears. Also positive for the m



Read More: BOE seen raising rates by 50 bps to 2.25% in September – Reuters poll

2022-08-14 18:27:00

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