World’s #2 economy slowing to the lowest levels in quite some time.

Chinese economic data released overnight showed industrial production in the world’s #2 economy slowing to the lowest levels in quite some time. Not only did factory output grow by just 9.2% in July but inflation eased to just 1.8%, the lowest in roughly two and a half years. The downbeat economic data doesn’t necessarily come as a surprise but has reinforced belief that further stimulus measures from the PBoC may not be far behind. U.S. jobless claims unexpectedly dropped by 6,000 to 361,000 filings last week. That’s better than the more pessimistic forecast of an increase to 375,000 filings. While jobs data is not exactly helping the cause for further U.S.  Fed stimulus, the fact that quarterly earnings are expected to grow just .9% can’t be ignored by the U.S. economic brain trust. Have a great day!