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MNI BRIEF: Chinese Authorities Cast Doubt On Deflation

MNI (Beijing)

China will not experience deflation as the government expects demand and the economy to improve gradually, according to Li Aihua, spokesperson at the National Bureau of Statistics.

Li, speaking at a press conference on Friday, said the economy continued to show improvement in November but faced insufficient demand, overcapacity in some industries and weak social expectations.

China's consumption continued to accelerate to a six-month high in November, with retail sales climbing by 10.1% y/y, from 7.6%, but underperforming expectations for 12.8%, data released by the NBS on Friday showed. (See: MNI BRIEF: China November Retail Sales At Six-Month High)

Recent drops in PMI results showed manufacturing's foundation still needs consolidation and policymakers should focus on expanding domestic demand with deepening supply-side structural reform, Li added.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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