China September data is seen tipping mild pickup in the economy
A flurry of data from China in the nearer weeks is supposed to point to moderate improvement in the economy during the third quarter as a government infrastructure spree as well as a housing boom spurs demand from steel and glass to appliances and furniture.
As for exports, they’re expected to remain poor, however, while fixed asset investment will probably hover close to 17-year minimums, thus leaving the economy imbalanced and extremely reliant on a rebound in heavy industry as well as government spending for growth.
Firmer manufacturing activity definitely points to faster GDP growth, as some financial analysts stress. Experts have revised their second-half GDP forecasts to 6.8% from 6.5% and their full-year growth forecast from 6.6% to 6.7%.
Improving growth would back views that the People's Bank of China will speed up cutting interest rates in 2016 and it could even keep them intact through 2017.