Economist Ho Woei Chan, CFA of UOB Group, analyzes the latest series of PMI releases on the Chinese economy.
Main conclusions
Official and private sector Caixin PMI reports indicated that both the manufacturing and services sectors were expanding in September. Although official PMIs rebounded and were above expectations, private sector Caixin PMIs unexpectedly softened.
The employment index barely improved in September, underscoring the weakness of the economy. Meanwhile, further improvements in production and sales prices likely indicated a greater cost impact and should alleviate concerns about deflation risks.
Overall, we continue to think that the economy will be able to achieve the official growth target of 5.0% in 2023. Monetary policy is also likely to continue boosting domestic demand in the fourth quarter of 2023.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
