China Growth Stumbles Again as PMIs Slip Into Contraction, Rabobank Warns
Rabobank strategists note that China's official PMIs slipped back into contraction in both manufacturing and services, with soft domestic demand persisting. Policymakers are focused on speeding up existing stimulus rather than launching new measures.
China's economy is showing renewed signs of weakness, according to Rabobank strategists. The latest official PMI data reveals that both manufacturing and non-manufacturing sectors contracted, signaling a broad-based pullback. Domestic demand remains subdued, reflecting persistent consumer and business caution.
Rather than rolling out fresh stimulus, authorities are prioritizing faster implementation of previously announced measures. This suggests a wait-and-see approach, with policymakers betting that existing support will gradually feed through to activity.
The data underscores China's growing reliance on exports to compensate for weak internal demand. However, escalating global trade tensions threaten that external lifeline, adding downside risk to the near-term outlook.
Source: FXStreet Forex News