Yet another round of grim Chinese economic data, yet another day of declines for China-exposed stocks. Despite signs that the world’s second-largest economy is improving, investors don’t seem to think it’s anywhere near fast enough.
The Chinese consumer price index was flat on an annual basis in September. This was short of expectations of 0.2% growth according to economists surveyed by FactSet, and exhibited deflation from August’s 0.1% print. The producer price index measure of inflation fell 2.5%, worse than expectations of a 2.3% decline but still picking up from a 3% slide in August.
There are signs of some improvement in the data, but “the Chinese economy could certainly do with some help if today’s September economic numbers are any guide,” said Michael Hewson, an analyst at broker CMC Markets. “There has been little indication that the Chinese economy is close to achieving a significant pickup in economic activity … imports have fallen for every month this year highlighting the challenges facing the Chinese government in stimulating domestic demand.