China’s manufacturing sector is expected to stabilise in July, which could indicate a steady economic recovery in the remainder months of 2021. Economists in a Bloomberg’s survey forecast China’s official manufacturing purchasing managers’ index to decrease slightly from 50.9 in June to 50.8 in July, while the non-manufacturing index is expected to soften from 53.5 to 53.3. The National Bureau of Statistics is due to publish the official reading on Saturday.
A semiconductor chip shortage and power outages in July are seen to have weighed on China’s industrial production amid strong export demand. Recent COVID-19 outbreaks in some provinces also sparked concerns on curtailed production and reduced consumer spending. Construction activities are expected to be stable or shrink slightly this month as provincial governments slowed the pace of special bond issuances used to fund infrastructure projects as Beijing stepped up scrutiny over big projects.
Property sales in China are estimated to have fallen in June, while small business confidence and the stock market dropped. However, the world’s second-largest economy is expected to continue a stable recovery pace in July despite some weaknesses. Chinese officials also expect the stable recovery to be maintained in the second half of the year but at the same time, warn of some potential slowdowns, including in exports and imports.
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Published on July 30, 2021 10:08 AM (GMT+8)Last Updated on July 30, 2021 10:08 AM (GMT+8)
