CHN: Real GDP printed 7.9%qoq growth in Q2 2009, faster than the 6.1%qoq growth in economic output in the previous quarter, and slightly above market expectations of a 7.8% growth in output. Economic output grew 7.1% in the first half of this year. Agriculture output growth came in at 3.8%qoq in Q2; industrial activity grew 6.6% over the quarter; and services sector activity gained 8.3%qoq in the second quarter of this year.
CHN: Industrial Production increased the most in nine months by 10.7%yoy in June, this after production in May had grown 8.9%yoy. Production output in Q2 2009 was up 9.1 % on the back of a 5.1%qoq output increase in Q1 2009. Output at public sector enterprises increased 1.7%yoy in Q2 while output at private sector enterprises increased 9.4%yoy compared with the same quarter last year. Heavy industry production rose 6.6%yoy, and light industry production increased 8.2% over the year in Q2. Industrial profits fell 22.9%yoy in the first five months of 2009, though profits at food manufacturing industries rose 17.1%yoy, and textiles manufacturers’ profits gained 16.6%yoy.
CHN: The Consumer Price Index fell by 1.7%yoy in June, a further fall in prices from the 1.4%yoy fall in May. Annual inflation in cities was down by 1.3%, while that in rural China was -0.6%. Inflation fell largely on housing prices which declined 3.9%yoy; transportation costs which were down 2.5% over the year in June; price of clothing that fell 2.4%yoy, and recreational activities that were 0.7% lower year-on-year. Commodity retail prices were down 2.3%yoy in June. The Producer Price Index plunged 7.8%yoy in June on the back of a 7.2%yoy fall in the previous month. The prices for raw materials, fuel, and power fell 11.2%yoy in June, but house prices nudged up 0.2% over the year.
CHN: Year-to-date Fixed Asset Investments rose 33.5% over the same six-month period in 2008 led by urban investments which surged 33.6%yoy in H1 2009 to be 35.3% higher over the year in June. Infrastructure investment rose 57.4% in H1 2009 compared with H1 2008, with rail infrastructure investment surging 126.5% in the same period and investments in roadways up nearly 55%. Industrial sector investments till June picked up 29.0%yoy. Investments in health, social security, and social welfare increased 71.3% in the first half of this year.
CHN: Total Retail Sales increased 15.0%yoy in June, a tad slower pace of sales increase compared with the 15.2%yoy increase in May. Sales in the first six-months of the year also rose 15.0% compared with the same period last year. Adjusted for inflation, retail sales grew 16.6% in the first half of 2009, compared with H1 2008. Urban sales during this period rose 14.4%yoy while sales in rural areas were higher by 16.4% in the first half of the year. Motor vehicle sales rose 18.1%.
It was China’s day. And as it is turning out to be, it is China’s year, it is going to be China’s decade, and even possibly her Century. The higher than expected growth in economic output along with robust retail sales data is a booster shot for the global economy, more so for the United States and Australia. Importantly, it is evident that the track back to the trajectory of 8.0% economic growth for this year is being sustained by the consistent infrastructure spending, which has indirect effects of boosting domestic demand to compensate the loss in the trade sector.

SUI: The ZEW Economic Expectations Index dropped to zero in July from 9.7 points in the previous month. The current economic situation index eased 2.5 points to -70.2. Inflation expectations dropped 20.5 points to 2.1, with nearly 90% of the respondents expecting interest rates to stay steady for the next six months.
Swiss data over the past couple of weeks has made for some serious concerns on the economy and on the future direction of the Swiss Franc. In an environment where going forward, interest rates are expected to remain unchanged, the Swiss economy is now ever more reliant on a global turn around.