Chinese Economic Data Flag A Warning For Global Growth

Chinese Economic Data Flag A Warning For Global Growth
Andrew Rummer

over 2 years ago1 min

Mentioned in story

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.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG