China’s Production Economy Grows 6.3% In Q2

What a contrast between the world’s two most significant economies. China, which derives its economic power from its manufacturing and production sector, reported that its economy grew by 6.3% in the Second Quarter of this year. It was even though the Chinese consumer cut back their spending dramatically. Retail spending was the weakest of this year, rising just over 3% compared to the Covid Lock-Down Quarter of 2022.

Next Thursday, we’ll get our first estimate for the United States GDP in the Second Quarter. In America, we rely on consumer spending to grow our economy. If our consumers were to cut back spending by half, like the Chinese, it would send our economy into a tailspin.

Overall, we’re expecting the US Economy is growing at roughly 2% (so says the GDP Now Model at the Atlanta Federal Reserve), or about one-third the rate of China’s growth (GDP +6.3%)

For the official Chinese Bureau of Statistics Release, go here:

http://www.stats.gov.cn/english/PressRelease/202307/t20230715_1941276.html

For the “Trading Economics” reading of those results, go here:

https://tradingeconomics.com/china/gdp-growth-annual