| Consensus | Consensus Range | Actual | Previous | |
| Quarter over Quarter | 0.9% | 0.8% to 1.0% | 0.9% | 1.3% |
| Year over Year | 4.5% | 4.4% to 4.8% | 4.3% | 5.0% |
Highlights
China's GDP rose 0.9 percent on the quarter in the three months to June, slowing from growth of 1.3 percent in the three months to December, with year-over-year growth also moderating from 5.0 percent to 4.3 percent. Monthly activity data also published today showed stronger growth in industrial production and retail sales but a bigger fall in investment in June.
In their statement accompanying today's data, officials characterised the data as showing the economy"continued to demonstrate strong resilience". Although officials did not explicitly refer to the Iran conflict, they again expressed caution about the external environment, noting that it is"becoming increasingly unstable and uncertain". Officials characterised their policies as"more proactive and vigorous", a slight change from last month's phrase of"more proactive and effective", but they provided no guidance about whether changes to policy settings will be considered in the near-term.
Market Consensus Before Announcement
Annual GDP growth expected down to 4.5 percent on year in Q2 versus 5.0 percent in Q1.
Definition
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy and is usually released in the first month after the reference period.
Description
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.