1/3 Despite the Xinhua headline, both industrial output and retail...
Michael Pettis@michaelxpettis
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Sep 17, 2024
~1 min read
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Despite the Xinhua headline, both industrial output and retail sales came in below already-low August expectations. Industrial output rose 4.5% year on year, down from 5.1% in July, while…
english.news.cn/20240914/f6ae4…
Despite the Xinhua headline, both industrial output and retail sales came in below already-low August expectations. Industrial output rose 4.5% year on year, down from 5.1% in July, while…
english.news.cn/20240914/f6ae4…
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retail sales rose 2.1%, compared with 2.7% in July. As ever, the main constraint is weak growth in consumption, with retail sales growing at less than half the pace of industrial output.
retail sales rose 2.1%, compared with 2.7% in July. As ever, the main constraint is weak growth in consumption, with retail sales growing at less than half the pace of industrial output.
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And as ever, the only way to bridge the gap between growth in consumption and growth in production is either with more investment, which the economy finds difficult to absorb, or with a larger trade surplus, which the rest of the world is reluctant to absorb.
And as ever, the only way to bridge the gap between growth in consumption and growth in production is either with more investment, which the economy finds difficult to absorb, or with a larger trade surplus, which the rest of the world is reluctant to absorb.