China's Economy Roars Back...Or Does It? A Predator's Perspective

The Hunt Begins: Retail Sales Surge!

Greetings fellow hunters! The data from the Middle Kingdom has arrived. China's retail sales a vital organ of their economic beast grew 6.4% in May. Not bad eh? 'If it bleeds we can kill it,' but this beast seems to be patching itself up. Seems these humans love to spend when they get a day off with their 'Labor Day' and 'Dragon Boat' festivities.

Industrial Output: The Predator's Disappointment

However not all is as it seems. The industrial output the backbone of their production slowed to 5.8%. A slight stumble but a stumble nonetheless. 'Stick around,' I always say. There's always more to the hunt. It seems the analysts were expecting more and so was I. Where's the thrill in easy prey?

Fixed Asset Investment: A Missed Shot

Their fixed asset investment? A measly 3.7% growth. They missed the shot! Even a Predator like myself occasionally misses but I don't make excuses. It's a slow burn like waiting for the perfect moment to strike from the trees.

Unemployment: The Weakest Link

The urban unemployment rate dropped to 5.0%. Fewer humans struggling to find sustenance? Good for them I suppose. But a healthy economy means a stronger enemy and that is no fun in the Jungle. 'One ugly mother...' but resourceful it seems.

Tariffs and Trade: Playing Hide and Seek

Ah the tariff wars! Beijing and Washington in a 90 day truce. Humans and their fleeting alliances. Like the time I teamed up with Dutch to take down that Alien Queen! Temporary relief for China's exports but their exports to the U.S. plunged over 34%. A significant blow even for a beast of this size. They try to offset it by exporting to other regions. Cunning but I’ve seen better.

Deflation: The Silent Killer

Sluggish domestic demand and consumer prices down for four months straight. Deflation a silent killer creeping into their system. Even factory gate prices are falling. This is not a good sign. But Goldman Sachs believes Beijing is not too worried as their exports are resilient and their GDP will grow by 5%. Hmm overconfidence can be a Predator's greatest weapon.