China Continues to Grow

by Marilou Moursund on June 14, 2011

in Commodities,Economic Indicators,Foreign Markets

While the US is experiencing slower growth, China is still trying to slow down the rate of inflation.  The PBOC raised bank reserve requirements by half a percent for the sixth time this year.  May inflation came in at 5.5%, and the government is concerned about social unrest.  Our retail sales came in today at 0.3% ex autos vs. 16.9% for China.  Our number was slightly better than expected, so the market is in rally mode today. 

Ed Yardeni also likes to look at electricity usage in China as an economic indicator since it is not as prone to manipulation by the government.  It rose 13.4 % in April versus 6.2% in December of 2010.

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