China’s GDP growth receded to 6.2% yoy in Q2

As widely expected, China’s Q2 GDP slowed to 6.2% yoy, after 6.4% yoy in Q1. This marked the weakest level in 27 years. By contrast, monthly real activity data like industrial production (IP), urban investments and retail sales surprised on the upside. Given the weak signals from recent PMIs, we are cautious that monthly data already signal a turn-around. That said, monetary as well as fiscal policy measures are markedly supporting the economy.