over 2 years ago • 1 min
Economic data from China, the biggest contributor to global economic growth, is coming in much worse than expected as the Asian nation’s post-pandemic rebound stutters.
As the chart shows, Citigroup’s economic surprise index for China has dropped to -81, one of the worst readings of the past decade. A reading of zero indicates that data was in line with economists’ predictions.
On Thursday, Caixin’s manufacturing Purchasing Managers’ Index (PMI) for June fell to 51.3 from 52 in May. Economists had expected a reading of 51.9. Other reports last month showed key data on retail sales and industrial production also missed forecasts.
Investors tend to react to the amount by which reality turns out better or worse than expectations. So this spate of disappointing data from the first large economy to control coronavirus suggests that Europe and the US could soon be following suit.
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