The release of Q2 national accounts data for a number of countries in the region revealed that Thailand continued to recover strongly, with the economy expanding by 3.5% (y-o-y), which helped to boost its growth outlook. Firm activity was also evident in the Philippines as the nation established itself as the second-fastest growing major economy in Asia, just behind India. By contrast, China continues to exhibit weakness, with key indicators for July hinting at a loss in growth momentum. In particular, the slowdown in fixed asset investment is a worry and 2016 forecasts have weakened considerably. Although forecasts from this month’s quarterly survey show that the outlook for China is brighter than it was six months ago, they are still trending lower.