Beige Book positive on retail sales and investment

BEIJING - The picture of China's economy slowing in the second quarter is misleading, or even inaccurate, with retail sales and investment actually stronger than the official data show, according to the China Beige Book.

"The retail sector may be seeing a turn higher, with profit and investment growth improving," CBB said in a report, adding that slowing seen in official data in May reflects not the current situation but weakness seen earlier this year and late last year. "The sector may already be emerging from the troubles Beijing is just now introducing publicly."

Similarly for investment, official statistics are lacking as they undercount retail spending, according to the private survey by CBB International, which collects anecdotal accounts similar to those in the US Federal Reserve's Beige Book.