Negative signals continue to come from economic indicators in China, which has implemented harsh epidemic measures with a zero-case strategy.
Industrial profits fell 8.5 percent year-on-year in April. Thus, the worst performance since April 2020 was recorded. Profits of foreign companies also fell by 16.2%.
The data formed the last circle of negative indicators from China.
A sharp contraction was observed in industrial production and retail sales in April, when many factories had to stop production and consumers had to stay at home within the scope of epidemic measures in China.
According to previously announced data, industrial production decreased by 2.9 percent in April compared to the same period of the previous year. Economists participating in the Bloomberg survey had expected a 0.5 percent increase in industrial production.
Retail sales fell 11.1 percent in the same period. The expectation for this data was determined as a decrease of 6.6 percent.
Growth is revised downward
The effect of epidemic measures continues to be monitored in the forecasts for Chinese growth.
JPMorgan and UBS were among the institutions that lowered their country's growth forecasts.
UBS cut its growth forecast for 2022 from 4.2 percent to 3 percent, while JPMorgan lowered its 2022 growth forecast from 4.3 percent to 3.7 percent.
In its assessment, JPMorgan also drew attention to the possibility of a deep contraction in the country in the second quarter due to Kovid measures.
Earlier, Goldman Sachs and Citi also made downward revisions to their forecasts.
Goldman Sachs lowered its 2022 growth forecast for China from 4.5 percent to 4 percent.
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