December 27, 2024 at 02:40AM
This in reference to the data from China earlier:
China November Industrial profit Year to Date (YTD) -4.7% y/y (prior -4.3%)
The move month alone m/m was -7.3%, extending its decline to a fourth straight month. But, October was -10% ,so a slower pace of fall in November.
The data comes via China’s National Bureau of Statistics (NBS). These industrial profit figures account for firms generating annual revenues of at least 20 million yuan ($2.7 million).
China is the world’s second-largest economy. It continues to face challenges in its post-pandemic recovery, including
weak consumer and business investment
a prolonged housing market slump
and new trade risks associated with the incoming U.S. administration
weak domestic demand
Recent economic data revealed mixed signals: industrial output grew in November, but home prices fell at their slowest pace in 17 months. Meanwhile, state-owned firms saw profits decline 8.4%, foreign firms recorded a 0.8% drop, and private-sector companies experienced a 1% fall during the first 11 months.
To counter these challenges, China’s policymakers have pledged to enhance economic support, including raising the fiscal deficit, issuing more debt, and loosening monetary policy. Measures include plans for record $411 billion special treasury bonds in 2024 and increased fiscal support for consumers and social security programs.
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I posted a few posts on info from China over the break earlier:
Catch up – World Bank raised its 2024 China growth forecast to 4.9%, from 4.8% previously
Catch up – Further supportive measures in store for China housing sector in 2025
Catch up – China revises up 2023 GDP by 2.7% from previous estimate
ICYMI: China’s top legislature set to convene annual session on 5 March next year
Chinese People’s Political Consultative Conference (CPPCC) on March 4
China’s National People’s Congress will be held March 5, 2025
People’s Bank of China injects 300 bn yuan in a 1 year MLF at unchanged rate of 2.00%
China has passed a law introducing a value added tax. Will take effect on January 1 2026 according to Xinhua …. another year away
This article was written by Eamonn Sheridan at www.forexlive.com.
