International | Oct 21 2010
By Greg Peel
This month's round of Chinese data have been even more closely watched than previously given the surprise Chinese rate hike this week. Economists had reason to suspect the numbers might come in a bit stronger than they were anticipating, particularly on the inflation front.
As it was, there were few surprises.
Third quarter GDP registered 9.6% annualised growth, down from 10.3% in the second quarter, and roughly in line with the 9.5% estimate.
The consumer price index rose to 3.6%, up from 3.5% and in line with consensus.
Urban investment fell to 24.5% from 24.8%, below the 24.6% forecast.
Industrial production posted a bit of a miss, falling to 13.3% from 13.9% against a 14.0% forecast.
This number was offset by a surprise in retail sales, which jumped to 18.8% from 18.4% when 18.5% was expected.
All up, the numbers reflect the efforts from Beijing to gradually slow the Chinese economy but also reflect Beijing's concerns over growing inflation. Recent trade balance data showed a reduction in China's surplus, suggesting growing import growth and falling export growth. These numbers have been borne out by the industrial production and retail sales numbers respectively.
