China Activity Data: High Base Masks Marginal Improvements

May economic activity in China showed modest month-on-month improvements, though high year-on-year base effects dampened the headline figures. Property investment remains a significant headwind to growth.

Key Takeaways

• 1.May economic activity improved modestly on a monthly basis, but year-on-year growth was impacted by high base effects.
• 2.Q2 GDP faces downside risks below 4.5%, with no rate cuts expected this year despite targeted support from the PBoC.
• 3.Property investment remains a major drag, declining 16.2% y/y, with home price declines showing a K-shaped divergence.

Table of Contents

• Key takeaways

Document Preview

Page 1 of 4

Subscribe for full accessStart Free Trial