China economy starts 2018 on solid trajectory after industrial profits dip

Robust economic data give it room to reform without as much worry the overhaul may undermine growth

As the latest China data showed some softening at the end of an upbeat year, reports for this month are looking likely to show the economy keeping pace despite slowing industrial profits.
 
The earliest indicators for January show momentum remains intact, with sales managers the most upbeat since July, financial experts more optimistic, and satellite imagery signaling manufacturing conditions are improving for the first time in four months. That reading is in line with forecasts that both main factory gauges remained at solidly expansionary levels.
 
“The strong momentum will likely be carried over to the first quarter, with