Chinese GDP data published today show growth slowed in the three months to June, with the economy expanding by 0.8 percent on the quarter after an increase of 2.2 percent in the three months to March. This was just below the consensus forecast for an increase of 0.9 percent. In year-over-year terms, growth picked up from 4.5 percent in the three months to March to 6.3 percent in the three months to June, below the consensus forecast of 7.1 percent. Official monthly data also released today showed stronger year-over-year growth in industrial production but weaker growth in retail sales and fixed asset investment in June.

Stronger year-over-year GDP growth in the three months to June largely reflects base effects of severe weakness in the same period 12 months earlier when major cities, including Beijing and Shanghai, were subject to strict lockdowns. The quarter-over-quarter number, however, suggests conditions have weakened in recent months, broadly in line with PMI survey data published over the period. This likely strengthens the case for additional policy easing after recent measures aimed at supporting China's property market and a reduction in policy rates last month.

Today's data were generally above expectations, resulting in an increase in the China ECDI from minus 57 to minus 16 and the ECDI-P from minus 60 to minus 3, indicating that data are underperforming market expectations to a lesser extent.

Second-quarter GDP is expected to rise 0.9 percent versus the first quarter which would compare with 2.2 percent sequential growth from the fourth quarter. The year-over-year expectation in the first quarter is growth of 7.1 percent which would compare with 4.5 percent growth in the first quarter.

Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country (or a region) during a certain period of time. GDP is the core indicator of the national accounts, and also an important indicator to measure the economic conditions and the level of development of a country or region. GDP is calculated from three approaches -- production, income and expenditure -- which reflect gross domestic product and its composition from different angles.

GDP is the all-inclusive measure of economic activity. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

The data are compiled by NBS and the People's Bank of China (PBoC). Estimates for non-financial corporations, financial corporations, general government, household and the rest of the world sectors are published. The production accounts, distribution and use of income account, and capital account data are compiled by NBS. NBS also develops the financial account by rearranging financial transactions data in the flow of funds accounts compiled by PBoC. There are no breakdowns of government consumption expenditure, gross fixed capital formation, change in inventories and net exports. Household consumption expenditures are broken down into urban and rural. The income components of GDP are only published in the input-output tables. NBS uses the Chinese Industrial Classification of the National Economy.