China Shows Signs Of A (Slightly) Slowing Economy

Manufacturing increased more slowly than expected in May, according to the latest Purchasing Managers Index, prompting fears that China’s economy overall may be moderating its growth rate. That should come with a warning about not putting too much store in one month’s figures, especially as manufacturing output usually slows in May, but as noted elsewhere PC sales have been weakening and the Labor Day holiday had seen lackluster retail sales for phones and TVs, suggesting that inventories are starting to back up.

At the same time, real estate property sales n Beijing, Shanghai and Shenzhen are down, too, suggesting that the crackdown on property speculation is taking effect. All of which, in turn, suggests there will be no urgency among policymakers to raise interest rates or let the yuan appreciate against the dollar.

Advertisements

Leave a comment

Filed under China, Economic Indicators, Macroeconomy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s