Chinese economic data missed expectations.
Bullion.Directory precious metals analysis 14 April, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics
Although many may worry that the world’s growth engine is beginning to slowdown, analysts foresee the slowdown as just another data point to invoke more stimulus out of the People’s Bank of China (PBOC). This was the slowest quarter of growth since the height of the financial crisis were China only grew 6.6 percent.
Industrial output showed growth of 5.6 percent in March, far below economist predictions of 10.9 percent. Retail sales grew 10.2 percent, narrowly missing the 10.9 percent.
The Chinese yuan has been strengthening against the dollar of late, and that is not particularly helpful as the second-largest economy moves closer to deflationary territory. The producer price index (PPI) has been stagnating in deflationary territory for a few years with the GDP deflator now moving into negative territory.
Consumer prices will soon follow.
Data Provided by Bloomberg; Chart posted by Tom Orlik
It is expected that the People’s Bank of China will likely follow major central banks with more easing.
Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.
Material provided on the Bullion.Directory website is strictly for informational purposes only. The content is developed from sources believed to be accurate at the time of publication; however, no representation or warranty is made as to its completeness or accuracy. No information on this website constitutes investment, financial, tax or legal advice and must not be relied upon as such. Users should consult appropriately qualified professional advisers before making any financial or investment decisions. Precious metals carry risk and may not be suitable for all investors. To the fullest extent permitted by law, Bullion.Directory, its staff, affiliates and associated entities shall not be liable for any loss, damage or loss of profit arising from reliance on information contained on this website or from investment decisions made by readers.
Leave a Reply