China's economy grows 4.5%, beating expectations

Gross domestic product (GDP) increased 4.5% year over year, exceeding the 4.4% market forecast and the previous 4.3% reading. Seasonally adjusted quarterly GDP growth reached 1.2%, above both the 0.9% forecast and the previous reading. Industrial production rose 5.5% annually, matching expectations and accelerating from 5.2%.

Retail sales increased 1.1% year over year, beating expectations of 0.5% and the previous 0.4% growth rate. Urban fixed-asset investment contracted 7.2% year to date on an annual basis, slightly better than the expected 7.3% decline but unchanged from the previous reading. The unemployment rate fell from 5.3% to 5.2%. Stronger growth and consumption data could support Chinese markets, although the continued investment contraction highlights vulnerabilities in the economic recovery.