UOB Group’s Economist Ho Woei Chen has made notable observations regarding China’s economic situation. The Manufacturing Purchasing Managers’ Index (PMI) has expanded for the second consecutive month. However, the slowdown in the construction sector has exerted a downward pull on the non-manufacturing PMI.
The economic recovery in China has not yet reached a broad-based state. As per the November PMIs, while manufacturing activities have witnessed a further acceleration, the progress in non-manufacturing activities has come to a halt due to the contraction in the construction segment. Additionally, deflationary pressure has seen an increase in November following a period of easing in October.
Despite the appearance that the economy may have bottomed out in the near term as a result of recent stimulus measures, the outlook for recovery remains rather weak. The market is now turning its attention to the upcoming Central Economic Work Conference, hoping to glean hints regarding the implementation of stronger support measures in the days ahead.
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