Moody’s Analytics forecasts that China’s economic data, due for release at the top of the hour, will show a significant deceleration in growth. The firm anticipates GDP growth will slow sharply to 4.2% year-on-year, down from 5.2% in the second quarter.
Further weakening is expected in domestic demand, with retail sales growth forecast to ease to 3%. This slowdown is partially attributed to a less favourable base effect due to the timing of the Mid-Autumn Festival.
Additionally, industrial production is expected to be weak because of ongoing overcapacity issues, and fixed-asset investment growth probably slowed, primarily weighed down by heightened tensions between the US and China.
This article was written by Eamonn Sheridan at investinglive.com.