By Dhirendra Tripathi
Investing.com – Shares of luxury good makers were trading weaker in European markets Monday following disappointing GDP growth figures from the world’s second biggest economy.
LVMH (PA:LVMH), Kering (PA:PRTP), the company behind Gucci and Yves Saint Laurent, and Hermes (PA:HRMS) all traded around 3% lower in Paris.
China grew 4.9% in the third quarter when the expectation called for a 5.2% expansion, according to Reuters.
Supply chain bottlenecks and major upheavals in the property market made it the weakest clip for the world’s biggest market for luxury goods since the third quarter of 2020.
Overall industrial output rose just 3.1% in September from a year earlier, marking the slowest growth since March 2020 when the pandemic was sweeping through parts of the country.
Traders looked through a modest rebound in retail sales in September, amid concerns that the structural issues weighing on the Chinese market, including the fate of Evergrande, once China’s largest property developer, will continue to weaken sales in what is the most important national market for the luxury sector.