China’s economic rebound loses momentum in September
CHINA’s economic rebound showed signs of flattening in September, weighed down by lacklustre home and car sales, a weaker stock market, and falling business confidence, reports Bloomberg.
Early indicators show China’s recovery isn’t headed in a positive direction although we do expect another spike as we enter the peak holiday season globally. China’s uneven recovery was initially driven by strong industrial output. A strong and broad spurt in spending is needed for a total economic rebound.
Home sales in China’s four largest cities slowed in the first three weeks of September, opposite of August. Small-business confidence eased after rising for six months as expectations rose in growth territory.
“This suggests that the recovery continued uninterrupted, despite signs that the V-shaped rebound is losing momentum,” said economists Shen Lan and Ding Shuang.
Purchasing manager indexes are expected to show September manufacturing improvement while exports for smaller businesses are expected to remain resilient.