Non-manufacturing PMI recorded a significant recovery. The index, which decreased to 50.0 in November, increased to 52.2 in December, signaling a recovery in the construction and service sectors.
While China's USD 19 trillion economy continues to struggle with weak consumption and investment, authorities expect a broader economic recovery to take place as the problems in the real estate market are resolved. Fiscal and monetary stimulus introduced at the end of this year is hoped to support the economy.
Increasing domestic demand is expected to benefit producers despite the global slowdown. The potential impact of US President-elect Donald Trump's proposed new tariffs on Chinese products is expected to be balanced by the strong domestic market.
Industrial production and retail sales data in November gave mixed signals, underlining that China is on a difficult journey for a lasting economic recovery. Government advisors recommend that the economy maintain its 5 % growth target by 2025 and increase consumer-oriented incentives.
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