Rising air pollution in China suggests its economy is growing faster and oil prices will climb

• Rising air pollution in China suggests its economy in on track to see a jump in growth, according to DataTrek Research.
• Oil prices should rise if China’s economy is accelerating, as its air quality suggests.
• “We prefer owning US large cap energy to Chinese equities to play this turn,” DataTrek said.

Rising air pollution in China’s five largest cities suggests its economy is about to see a surge in growth, according to a Monday note from DataTrek Research.

The firm monitors China’s daily air-quality readings, and higher pollution has exhibited a strong correlation to economic growth. While dirty air is bad for the country’s citizens, it’s a welcome sign for the country’s economy, which has seen decelerating growth over the past few quarters.