China’s GDP growth slowed to just 4% on a year-on-year basis in the fourth quarter, affected by weakness in the real estate sector, power outages, and the government’s zero-tolerance response to fresh COVID-19 outbreaks. Purchasing managers’ surveys suggest that this softness in activity continued in January, despite recent policy easing by the authorities. The official NBS Manufacturing PMI fell to just 50.1 from 50.3 previously – only slightly above the 50 level that separates expansion from contraction. Its non-manufacturing counterpart declined to 51.1 from 52.7. The Caixin Manufacturing PMI also fell from 50.9 to 49.1 – its weakest since February 2020. Amid ongoing weakness in activity and with the all-important 20th National Party Congress occurring later this year, we expect further policy easing. Nevertheless, the Chinese economy will face a number of major downside risks in 2022.
Refresh this chart in your browser | Edit the chart in Datastream
Join a growing community of asset managers and stay up to date with the latest research from Refinitiv and partners to help you inform your investment decisions. Follow our Asset Management LinkedIn showcase page.
________________________________________________________________________________________
Refinitiv Datastream
Financial time series database which allows you to identify and examine trends, generate and test ideas and develop view points on the market.
Refinitiv offers the world’s most comprehensive historical database for numerical macroeconomic and cross-asset financial data which started in the 1950s and has grown into an indispensable resource for financial professionals. Find out more.
