November 14, 2024 03:15 GMT
CHINA: Data Preview: Forecasts Point to Pick up in Activity.
CHINA
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- Tomorrow sees the release of two key activity data in Industrial Production and Retail Sales.
- Since September the authorities have released a variety of measures aimed at stabilizing the economy and early indications are that tomorrow’s data will show signs that it is working.
- Forecasters are predicting that October’s Industrial Production will rise by +5.6% YoY, the biggest increase since May.
- The China Official Manufacturing PMI expanded in October for the first time since April with the output component the main contributor and steel output turning positive.
- Additionally, October’s Retail Sales are forecast to rise by +3.8% from 3.2% in September.
- China Official PMI Services crept into expansion for October and various high frequency indicators have turned positive also. The stimulus measures are aimed at stabilizing the economy and hence will take time to show up in the date.
- Should the forecasts be correct, authorities will be satisfied that the early signs are that confidence is returning.
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