There were no nasty surprises when China reported its growth figures for the second quarter. Economists had forecast that the world’s second-largest economy would grow only around 6.9%. But the National Bureau of Statistics of China said growth came in at a better-than-forecast rate of 7%. It seems that an increase in manufacturing and a rebound in exports helped to offset the cooling property market.
There was also good news on China’s rebalancing strategy. The statistics agency said consumption accounted for around 60% of China’s economic growth. So it looks as though China is starting to look more like a developed economy, after all. That could be good news for Singapore-based Chinese mall operators such as Mapletree Greater China Commercial Trust (SGX: M44U).
Singapore’s economy grew at a much slower rate of 1.7% than expected. Manufacturing contracted 4% in the second quarter, which was worse than the 2.7% shrinking from the previous quarter. But there was a glimmer of light in the services sector. That showed some signs of growth, albeit slower than the preceding quarter.
Will she or won’t she? If Janet Yellen, the Fed chair, was looking at the latest retail sales figures, then she might just think twice about hiking interest rates this year. According to the US Commerce Department, retail sales slipped 0.3% last month. But Yellen is sticking to her guns – a rate hike is likely this year.
And finally…..Are you feeling the heat?
No, not the heat from the recent stock-market gyration but, instead, the ambient temperature of Singapore. According to the Singapore Government, average temperatures in the Garden City could rise by as much as 4.6°C, by the end of the century. It said the mean temperatures in Singapore could increase to 32°C.
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