China’s Slowdown Raises Unemployment While Recovery Signs Emerge By Bloomberg

0
6
© Bloomberg. People walk up a flight of stairs as a Chinese flag is displayed at a border crossing facility in the Sha Tou Jiao Port of Shenzhen, China, on Friday, May 18, 2018. China’s growth this year shows no signs of slowing, despite rising tensions with the U.S. over trade and disappointing economic data in May, according to a Bloomberg survey. Photographer: Qilai Shen/Bloomberg


© Bloomberg. People walk up a flight of stairs as a Chinese flag is displayed at a border crossing facility in the Sha Tou Jiao Port of Shenzhen, China, on Friday, May 18, 2018. China’s growth this year shows no signs of slowing, despite rising tensions with the U.S. over trade and disappointing economic data in May, according to a Bloomberg survey. Photographer: Qilai Shen/Bloomberg

TedsWoodworking Plans and Projects

(Bloomberg) — China’s economic slowdown deepened in the first two months of the year pushing unemployment sharply higher, raising the stakes for the government’s current stimulus strategy.

  • Industrial output rose 5.3 percent from a year earlier, the worst start to a year since 2009. Retail sales expanded 8.2 percent, the slowest pace since at least 2012. On the upside, fixed-asset investment picked up and property investment jumped.

Key Insights

  • The unemployment rate rose to 5.3 percent at the end of February from 4.9 percent in December, the highest level in two years.
  • Property investment jumped to 11.6 percent growth, the highest since November 2014.
  • “The industrial production reading is probably close to the bottom,” Helen Qiao, chief Greater China economist at Bank of America Corp (NYSE:). in Hong Kong told Bloomberg Television. “We think that growth will stabilize and improve in the second quarter,” she said, adding that the improvement in property markets will buoy consumer demand.
  • “Today’s data means the economy will take a longer time to bottom out as industrial production and consumption are still under pressure despite the rebound in investment” and the worsening jobless rate indicates more easing policies to come as policy makers always put employment at the first place, said Liu Peiqian, Asia strategist at Natwest Markets PLC in Singapore.

Get More

  • Policy makers have signaled during the ongoing annual national legislature meeting that a debt-fueled investment boom won’t be deployed to cushion the slowdown, and tax reductions will be the main focus of stimulus.
  • There was no January data as the National Bureau of Statistics combines readings for the first two months of each year to smooth out volatility from the Lunar New Year holiday, when factories and businesses across the country shut down.

(Updates throughout.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here