China economy weakens broadly, particularly retail, Beige Book shows
China Beige Book reports decline in retail and services sectors and drop in corporate loans
The mainland economy is weakening across the board, with the previously robust retail and services sectors now starting to see slippage in revenue growth, according to the findings of a new nationwide survey.
The China Beige Book survey also revealed a fresh drop in private sector corporate borrowing in the second quarter of the year, sinking to its lowest level in 18 months, as lending costs rose, flying in the face of official data indicating a surge in credit growth across the economy.
"Pricing power deteriorated more than inflation in input costs and wages, resulting in a profit squeeze. Charged interest rates rose and company borrowing fell yet again," Leland Miller, the president of CCB International, which published the survey, said in a statement.
"Our data are clear that there has been no flood of credit."
Official data for last month put the annual growth in broad money supply at 15.8 per cent and total social financing - the government's measure of credit in the economy - was more than 1 trillion yuan (HK$1.26 trillion).
Overall financing in the economy was up 52 per cent in the first five months of the year on the same period last year, according to central bank data.