China: Jan-Feb Data Better Than Expected (Pictet Wealth Management)

The first batch of Chinese data in 2018 on investment and industrial production came in stronger than expected, which largely dissipates the previous concerns of a sharp deceleration in Chinese growth in Q1. However, details of the data suggest that actual growth momentum may not be as strong as the numbers indicate. Retail sales were a bit weaker than expected, for example. With the wealth effects from rising housing prices fading, we expect household spending growth to moderate in 2018 — although the long-term trend of rising consumption in China remaining intact. READ MORE