China’s government indicated a slowdown in the world’s second-largest economy is bottoming out, underscoring forecasts for policy makers to avoid cutting interest rates this year.
President Xi Jinping said expansion is on a “more stable footing,” the Xinhua News Agency reported May 31. An official manufacturing index released the next day showed a pick-up in growth, rising to 50.8 in May from 50.6 in April, while a separate gauge today signaled a contraction.
Stabilization in Chinese industry adds to signs of strengthening in Asia after Japan last week reported an advance in factory output and South Korean industrial production and exports unexpectedly increased. A Bloomberg News survey of economists showed the People’s Bank of China is more likely to raise interest rates than cut them in the coming year.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.