In a report examining China’s modest GDP growth rebound, the analysis concludes that the headline improvement in Q3 and September activity overstates the underlying strength of the economy. The 4.5% year-on-year Q3 reading beat both consensus and the report’s forecast, and September data showed industrial production, retail sales and fixed asset investment all picking up. But the note attributes much of the lift to a significantly lower comparison base, strong export growth and, to a lesser extent, a recent round of policy easing from Beijing.
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