China's Economic Recovery Loses Steam as Manufacturing and Services Slow Down
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China's manufacturing activity unexpectedly contracted in October, slowing the economic recovery momentum. The official PMI fell to 49.5 from 50.2.
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Non-manufacturing PMI also declined to 50.6 from 51.7, indicating slowing service sector and construction activity.
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Exports and imports continued to shrink, suggesting struggling overseas demand and fewer imported components.
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Analysts say more policy support may be needed to achieve China's 5% annual growth target.
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China approved $137B sovereign bond issue in Q4 and allowed local governments to front-load 2024 bond quotas to support investment and growth.