It may come as no surprise that the IMF decided to downgrade its growth outlook for China. The revision was driven by weak global economic conditions and unsatisfactory results recorded in China as well. Indeed, the IMF is concerned about the economic recovery in China and it believes that the country’s authorities should introduce essential reforms aimed at bringing a sustainable recovery.
China saw its industrial profit climb in April as the energy and automotive sectors visibly accelerated. Yet the Chinese officials pour cold water on hopes that the economy will recover at the faster pace.
Apparently, signs of the China’s economic recovery are weakening as the latest flash manufacturing PMI showed that factory activity slumped significantly in May. Data released by HSBC Holdings Plc indicated that the economic growth of the world’s second economy was visibly slackening in the second quarter of the year. It seems that bad days are gathering over China’s manufacturing.
Even though China saw inflation speed up vaguely in April, it remained subdued, thereby making it possible for the government to introduce measures aimed at fostering the economy. Concerns have been recently raised over the strength of the economic recovery and the state of the world’s second economy.
It seems that there is little sunshine over China as country’s trade growth substantially improved in April, topping analysts’ estimates. Indeed, China surprised with its figures on exports and imports as they climbed more than initially estimated. Recent data will certainly assuage some concerns over weakness in the economic recovery of China, but many questions and worries have not been resolved yet.
It seems that black clouds are again over China. The world’s second economy saw its manufacturing activity slow down in April more than expected, raising fears that the highly-anticipated recovery was not strong enough. The drop in the China’s manufacturing PMI in April awoke fears that the slowdown in the China’s economy would also be witnessed in the second quarter.
China’s manufacturing activity for April certainly embittered analysts and markets as the preliminary reading showed that the factory activity expanded at a slower pace than initially expected, adding to signs that the world’s second economy was slowing down. There are still many various obstacles ahead of China which is trying to get back on the growth track.
As it was widely expected, China’s manufacturing activity improved in March adding to signs of the much-anticipated economic recovery in the Asian dragon. Even though China witnessed an expansion in its factory output, analysts expected a bigger increase.
Official data showed that China enjoyed strong exports in February, highlighting signs that the economy was deliberately rebounding. Yet, China’s imports were weak, missing analysts’ expectations. The surprisingly good results of China’s exports were driven by improving global demand. In addition, data on China’s exports was higher-than-expected, leaving some analysts baffled as they had estimated that the economy would see a trade deficit due to the timing of Lunar New Year holiday.
On the 14th of December, HSBC Holding Plc informed that the initial China manufacturing grew to 50.9 in December. The results of the HSBC survey show that the world’s second economy is on the track to recovery despite the fact that the country is facing external weaknesses. The growth, which was seen in new orders and employment, means that China may expect better days. In addition, the China PMI suggests that the country will be able to resist an evident slowdown in exports.