First Look At China’s Second Quarter Numbers

From FoxBusiness, here are the headline numbers on China’s GDP for the second quarter:

China’s gross domestic product expanded by 7.9% in the three months ended June 30 from the year-ago period, driven by domestic consumption and a strong increase in industrial activity, Chinese government data showed Thursday. The growth rate was higher than the 7.7% expansion anticipated by economists polled by Dow Jones Newswires and marked a sharp acceleration from the 6.1% growth recorded in the first quarter. The expansion came in spite of a decline in Chinese consumer and wholesale prices in June. Official data showed the mainland’s consumer price index fell 1.7% in June from the year-earlier period, while the monthly producer price index shrank 7.8%. In May, China’s CPI fell 1.4% while the PPI declined 7.2%.

Seems kind of strange to be experiencing decent growth at the same time the economy is exhibiting deflationary tendencies. I’ll reserve any other comments until I see some more analysis, but, as usual, I don’t trust the numbers out of China all that much.

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