* Latest Chinese data shows economy is not collapsing, but raises questions about the outlook for consumer spending
* Data suggests government’s stimulus efforts are starting to bear fruit
Chinese consumers reined in their spending in October on increasing uncertainty amid the trade war with the United States, government data released on Wednesday shows.
But growth in fixed-asset investment and industrial production both accelerated during the first month of the fourth quarter, indicating that while the economy may be slowing, it is not collapsing under the weight of trade war uncertainty.
Analysts, however, said the worst was yet to come for the Chinese economy, as the impact of the trade war is expected to weigh on growth at least until the middle of next year. Many expected the government to enact more stimulus measures in the coming months to offset the affects of the trade conflict.
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WNU Editor: I am personally bearish on the Chinese economy. Too much credit and debt. There are many economic balloons (real estate, business debt, etc.). Beijing’s political agenda of curbing dissent is also making it very difficult for foreign investors to invest in China. Dump in the current trade war with the U.S. …. so yes …. China’s economy is not going to be what it use to be.