China is gaining momentum
Despite negative growth forecasts, the Chinese economy is gaining momentum. There has been a noticeable increase in industrial production as well as retail trade and construction. The manufacturing industry increased its production by 6.3 per cent compared to the same month last year. State infrastructure investments as well as the construction boom drove the demand for building materials. There is also a revival of the steel industry, the latter having reduced its capacity for a long time. Retail sales unexpectedly rose significantly, lifting in August by 10.6 per cent above expert estimates and above the increase in the previous month. Investments in facilities such as factories rose by 8.1 per cent, slightly more than expected. Investments in real estate rose by 6.2 per cent. With 6.7 per cent economic growth, China has achieved its target of 6.5 per cent to 7 per cent. Nevertheless, the question remains how the structural change and the consequences of Brexit will impact the second largest economy in the world in the medium term.