China: Economy in a pickle – RBS

Analysts at the Royal Bank of Scotland, point out that after a disappointing Q3, China’s economic activity tugged in opposite directions in October.

Key Quotes

“On the one hand, infrastructure spending grew at a faster clip, thanks to policy support, while industrial production improved. However, as economic headwinds continued to intensify, both consumers and investors decided to stay on the sidelines.”

“In particular, weak retail sales and tepid credit growth underscored the weakness in domestic demand. To add to the gloom, home sales fell and real estate investment cooled to a 10 month low. And this is happening in a period dubbed as ‘Golden September and Silver October’, the peak spending season in China. Another careful balancing act required by policymakers then.”