In some positive news for the Chinese economy it was reported today that retail sales in China rose unexpectedly last month. According to a report released by the National Bureau of Statistics, it was stated that Chinese retail sales rose to an annual rate of 10.9 percent as compared to a reading of 10.8 percent in the preceding month. Analysts on the street had expected Chinese retail sales to remain unchanged at 10.8 percent. The retail sales report is a closely watched figure by traders and investors on the street as it provides an insight into the domestic consumption trajectory in the world’s second largest economy.
It was also reported today that the world’s second largest economy grew at its slowest pace since 2009 which is being seen as a huge negative by traders and investors on the street. . It was reported that the Chinese economy grew by 6.9 percent in the three months ended in September which is the slowest rate of growth since 2009 and lower from last quarter’s 7 percent growth. Many analysts believe that weakening trade and manufacturing are one of the key reasons for the slowdown in growth and is being seen as a huge negative by traders and investors.
In some other negative news for the economy, it was reported that China’s fixed asset investment fell more than expected last month which is being seen as further signs of deterioration in the Chinese economy. It is imperative to state that the World Bank in a recently released report had cut the growth forecast for the Chinese economy and had said that the slowdown in the Chinese economy posed significant challenges to the global growth trajectory. The report released last week was seen as a huge negative by traders and investors on the street.