- Home
- >
- Fundamental Analysis
- >
- China’s Growth Looks Like It Has Already Peaked for 2017
China’s Growth Looks Like It Has Already Peaked for 2017
Rating:
Loading...The earliest indicators for China’s economy in June signal that the manufacturing sector may be poised to decelerate, while other challenges loom in the second half of this year.
Small- and medium-sized enterprises showed the lowest level of confidence in 16 months, a gauge of manufacturing drawn from satellite imagery slumped, and conditions in the steel business remained lackluster. There’s some good news though: sales-manager sentiment stayed positive, and outlook of financial experts recovered.
Output in the world’s second-largest economy has softened in the second quarter after a strong start to the year, with investment slowing, some credit becoming tighter and evidence emerging that administrative curbs on the property market are starting to bite. If the slowdown worsens in the coming months, the government’s resolve to curb risk in the banking sector could be tested during a period of leadership transition in Beijing.
Here’s what June’s earliest indicators show:
Smaller Businesses
Standard Chartered Plc’s Small and Medium Enterprise Confidence Index slumped to a 16-month low of 54.7, signaling smaller companies are finding it harder to obtain credit as regulators move to damp financial risks.
Satellite View
The outlook from orbit also looks weaker. Manufacturing signaled deterioration for the first time since August, according to the China Satellite Manufacturing Index, which fell to 49.6.
Financial Experts
International investor confidence in the Chinese outlook recovered this month from May, according to a survey of the China Economic Panel, a joint project of The Centre for European Economic Research (ZEW) in Mannheim, Germany, and Fudan University in Shanghai.
The ZEW index on investor expectations for the economy in the next 12 months rose to 9.7 from minus 0.1 in May -- still lower than April’s 17.1 reading.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
