China: Stronger than expected bounce in March retail sales - TDS

TD Securities analysts point out that following a sharp slowdown in China’s H2 18, the March retail sales reading revealed a stronger than expected bounce back of 8.7% y/y.

Key Quotes

“There was a similar pattern for industrial production which also jumped in March to 8.5% y/y. Targeted monetary stimulus alongside tax cuts have clearly helped, but as seen by the pull back in the PMI and weaker April exports data IP is likely to slow in April to around 6.3% y/y, while retail sales are also likely to moderate to a 8.5% y/y pace.”