In China, the third quarter in China has seen a fresh down move, almost weakening to three-decade lows.
Factory production grew by just 4.7 percent in October on a year-on-year basis, according to the National Bureau of Statistics.
Thursday’s data shows that industrial production has been the worst hit by the trade war with Washington. October’s data of 4.7 percent is much lower than that of September at 5.8 percent. With demand slowing in the domestic and global markets, the broad segment is showing signs of trouble.
In addition to the current woes, not much is expected from the GDP figures too. For the fourth quarter, China’s GDP was at 6.0 percent. But it is expected to slow down further in the third quarter, to 5.8 percent, states Nomura.
Manufacturers continue to avoid investment as order books are still not very good from weakening trade cues. Retail sales have grown by 7.2 percent instead of the expected 7.9 percent growth.
China’s economic growth is hit by trade war concerns. Global demand has declined and the supply chain cycle has been disrupted along with weakening trade.
The recent positive statement from top officials of China and the U.S brought some cheer to investors and the stock market. But a final agreement to the Phase-One deal continues to evade. Talks continue between the U.S. and China. A Phase-one deal may take place once a few sticking points are removed, which will help in the removal of tariffs.
Inflation has been rampant, especially as food prices have increased in the past few months. Prices of pork and other meat have soared, as imports from the U.S. have stopped.
Fixed asset investment has also shown a growing weakness. Almost a third of the current year is over, but this sector has grown just 5.2 percent, much lower than the expected growth of 5.4 percent.
Economic data in both China and Japan have weakened.