While China’s 3Q GDP number was a little lower than expectations at 6.0% y/y the monthly production and activity series for September all improved. Retail sales growth picked up to 7.8% y/y from 7.5% while industrial activity rebounded to 5.8% y/y from 4.4% in August. Investment was perhaps the one area of disappointment, growth slowing to 5.4% y/y despite a further modest pick up on the State Owned side.
US industrial activity disappointed again in September, with output down -0.4% m/m. Although there was some better news in August, with production from then revised upward a little bit, the underlying trend remains weak. Manufacturing is still the focal point with the declines we’ve seen in non-durables spreading to durables this month.