China's first-quarter GDP grew 5.3%, exceeding expectations
In the first quarter of 2024, the Chinese economy grew by 5.3% year-on-year, an increase from 5.2% in the previous quarter. Previously, economists predicted an economic growth rate of 5.0%.
On Tuesday, the Chinese economy became the focus. The GDP data, industrial production, retail sales, fixed assets investment and unemployment rate in the first quarter attracted investors' attention.
Q1 China GDP Growth 5.3%, exceeding expectations
In the first quarter of 2024, the Chinese economy grew by 5.3% year-on-year, an increase from 5.2% in the previous quarter. Previously, economists predicted an economic growth rate of 5.0%.On a month on month basis, the Chinese economy grew by 1.6% in the first quarter, compared to a growth of 1.0% in the previous quarter. Previously, economists predicted a growth of 0.9%.
In addition, China has also released data on other economic indicators.
In March, industrial production increased by 4.5% year-on-year, a decrease from the 7.0% growth in February. Retail sales increased by 3.1% year-on-year, while February saw a growth of 5.5%. Earlier, economists predicted that industrial production and retail sales would increase by 5.4% and 4.5% year-on-year, respectively.
On the other hand, fixed assets investment increased by 4.5% year on year, and the unemployment rate dropped from 5.3% to 5.2%. Economists had predicted that fixed assets investment would grow by 5.3% and the unemployment rate would fall to 5.2%.
What to focus on next？
The US housing sector data will attract the attention of investors. Economists predict that housing starts will decrease by 0.8% in March, while February saw a surge of 10.7%. In addition, economists predict that construction permits will decrease by 0.7% in March, while they increased by 2.4% in February.
Housing sector data may affect the interest rate path of the Federal Reserve. FOMC member Austan Goolsbee recently discussed the impact of housing service inflation on overall inflation. The improved housing sector situation may exacerbate inflationary pressures on housing services.
In addition to data from the housing sector, the March industrial production data in the United States will also attract attention. Economists predict that industrial production will increase by 0.2% month on month in March. Relatively speaking, housing sector data may have a greater impact on the Federal Reserve's interest rate path.
In addition to data, investors should also pay attention to comments from FOMC members and updates on the situation in the Middle East.
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