Chinas industrial production growth likely slowed in July

China’s industrial production growth is expected to have slowed in July. According to consensus expectations, industrial production is likely to have grown 7.1 percent, as compared with the prior month’s growth of 7.6 percent.

Since 2015, the industrial production growth of China has stabilized as policymakers have provided boost in form of easier credit to underpin the economy. Along with stronger demand abroad, industrial production and economic growth more wide have been remarkably stable in China recently. Chinese consumption has also strengthened against this backdrop. July retail sales are expected to have growth around 11 percent year-on-year.

China’s authorities are facing the daunting task of deleveraging the non-financial corporate sector while also threading the needle on the government’s economic growth target. Indicators releasing next week would probably show that the Chinese economic activity was quite stable at the beginning of the third quarter; however, the economic growth is expected to gradually decelerate later in 2017 and through 2018 as an aging population and high debt loads drag on labor and capital growth, noted Wells Fargo in a research report.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was neutral at -2.87522, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -75.4199. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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