China’s trade war-hit economy set to slow for seventh straight month in December: Bloomberg report
- Bloomberg Economics gauge suggests Beijing government’s stimulus approach and the US trade war truce have yet to have much effect
- Official data for December, the purchasing managers’ indexes for the manufacturing and non-manufacturing sectors, will be released on Monday in Beijing
China’s economy slowed for a seventh straight month in December as the trade war with the United States, subdued domestic demand and decelerating factory inflation combined to undercut growth, according to a Bloomberg Economics gauge.
The Bloomberg Economics gauge aggregates the earliest available indicators on business conditions and market sentiment.
The data suggest the government’s stimulus approach and the trade war truce with the US have yet to have much effect on the nation’s growth trajectory.
The data signals that activity is continuing to slow, with uncertainties in global trade and sluggish confidence still the major constraints, said David Qu, economist at Bloomberg Economics.
“Recent fluctuation in the commodity market may further undermine manufacturing sector profitability,” and we will be looking closely at what the government does to stabilise the economy in early 2019, he said.
China’s leadership last week pledged more support for the economy in 2019, indicating an increasing sense of concern in Beijing over the economy and stalling growth.