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Is the Chinese Economy Getting Back on Track?

As you should know by now, the Chinese has been stalling. However, today's data along with some other recent data suggest the 2nd largest economy in the world is getting back on track.

Chinese GDP in the second quarter grew 7.5% on the year according the National Bureau of Statistics, a Chinese government agency. This is an improvement from the 7.4% reading in Q1. 

(source: forexfactory)

Industrial Production for June grew 9.2% since June 2013. This is an improvement from the 8.8% reading in May, and beat estimates of a 9.0% reading. This is the best reading since January this year, and suggests that the slowdown may have bottomed. 

Fixed Asset Investment Grew a 17.3% annualized rate based on the data year-to-date in June. This is an uptick from the 17.2% reading in May. Forecasts called for no change.

Back on Track?
Today's GDP, industrial production and investment data suggest that the recent stimulus measures applied by the Chinese government are indeed helping level off the slow down and get the economy back on track. The 7.5% GDP growth is the government's target rate.

While data was rosy, Asian stocks were in mixed trading. Remember the markets are often suspicious of Chinese data from the government especially when they seem to always reflect positively on government actions. Still, we should acknowledge that the Chinese economy is still strong despite some cooling.