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June economic data shows further slowing

  • Published 15 Jul 2010

China's economic growth slowed in the second quarter to 10.3%, down from 11.9% in Q1, according to data released by the National Bureau of Statistics today. Barring any major policy changes within the next three months, we expect GDP growth to continue moderating into the second half (CC July 15 Scenarios).

June's consumer price index (CPI), a measure of inflation, fell back to 2.9% year on year, down from 3.1% in May and back within the 3% target set by Beijing for all of 2010. Month on month comparison's showed a deflationary trend of -0.6%, easing the pressure on policymakers to act to cool inflation.

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