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October Data Weaker Than Expected But Signs Of Stabilisation In Investme

Published 11/13/2014, 07:35 AM
Updated 05/14/2017, 06:45 AM

The Chinese data released this morning were slightly weaker than expected and suggest continued moderate downward pressure on growth. However, on a positive note, there was also signs of stabilisation in investment demand. Weaker investment demand has been the main driver behind the recent slowdown in growth.

Importantly, there were signs of stabilisation in the housing market with both new home sales and housing starts improving. Hence, the short-term downside risk from the housing market now appears to be declining. The biggest short-term downside risk now appears to be possible slower export growth due to weaker global growth.

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