Published: Tue, July 16, 2019
Finance | By Kristine Clayton

Gold trades steady ahead of China GDP data

Gold trades steady ahead of China GDP data

Growth in gross the domestic product (GDP) - the most commonly used indicator for the size of an economy - slowed to 6.2 percent in the second quarter, down from 6.4 percent in the first three months of the year, according to figures released on Monday by the National Bureau of Statistics.

Chinese exports to the United States fell 7.8% in June from a year ago.

The US and China - the world's two largest economies - have been fighting a damaging trade war over the past year. That was the weakest growth since the first quarter of 2009 in the aftermath of the global financial crisis.

"China's growth could slow to 6% to 6.1% in the second half", said Nie Wen, an economist at Hwabao Trust.

A breakdown of the data showed output of the service sector, which accounted for 54.9 per cent of the total GDP, rose seven per cent in the first half of the year, outpacing a three per cent increase in the primary industry and a 5.8-per cent rise in the secondary industry.

The US has imposed tariffs on Dollars 250 billion in Chinese imports, drawing retaliatory sanctions from Beijing on USD 110 billion in US products.

Americans are buying more from suppliers in Vietnam, Taiwan, Bangladesh and South Korea as they try to avoid U.S. tariffs on Chinese consumer goods, according to data released by the Census Bureau. China's exports to the USA dropped more than 8 per cent over the first half of the year.

BEIJING, July 15 (Reuters) - Growth in China's new home prices cooled in June as sales shrank for a second month, but building starts and investment quickened, providing a cushion for the slowing economy while Beijing claims some wins in reducing market froth.

China's industrial output grew 6.3% in June from a 12 months earlier, official information confirmed on Monday, selecting up from Could's 17-year low and handily beating market expectations.

Tom Rafferty, principal economist for China at The EIU, believes businesses remain sceptical that the two countries will reach a broader trade agreement and recognise that trade tensions may flare up again. The US Federal Reserve has also signaled it may lower interest rates.

But the real surprises in the latest figures from Beijing came in the form of unexpectedly strong investments and retail sales in June, with the rapid rise of e-commerce emerging as a powerful economic force in its own right. Gains were led by a 17.2% surge in auto sales.

Fixed-asset investment for the first half of the year rose 5.8 percent from a year earlier, compared with a 5.5 percent increase forecast by analysts and 5.6 percent in the first five months of the year.

For tier-2 cities, which include most of larger provincial capitals, home prices grew 0.8% in June, identical with the previous month's advance.

The growth, however, was in line with the government's annual target range of 6.0-6.5 per cent for the whole year, down from the 6.6 per cent growth China put up in 2018.

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