China: Industrial production growth to tick up in May - Nomura

Analysts at Nomura expect China’s industrial production growth to tick up in May, as indicated by high frequency indicators, a better-than-expected official PMI and strong export growth.

Key Quotes

“Fixed asset investment growth should stabilise in May after slowing in previous months, as the acceleration in fiscal expenditure likely offset the negative impact from deleveraging. We expect retail sales growth to rebound after a sharper-than-expected drop in April. CPI inflation is likely to rebound as high-frequency data suggest some pick-up in food price inflation. We expect a continued rise in PPI inflation, partly due to a low base last year and in line with the rise in price-related sub-indices in the official manufacturing PMI.”