China’s service sector did not come out of recession
reported by Mehr News Agency, the index of Chinese service purchasing managers showed that the service activity in the country’s economy has expanded less than the previous month; This means that consumer demand is still slow despite Beijing’s recent stimulus.
China’s Caixin Services Purchasing Managers’ Index fell to 51.5 in November from 52 a month earlier, according to a statement released by Caixin and S&P Global on Wednesday. The average forecast of Bloomberg economists was 52.4. Any reading above 50 indicates improvement.
Chinese government officials have announced a series of support measures since late September, including interest rate cuts and a $1.4 trillion program to help indebted local governments, leading to China’s economy will show signs of recovery from October.
Despite Donald Trump’s return to the White House heralding a tariff war and the collapse of bilateral trade, China’s top leaders are expected to hold their annual economic work conference behind closed doors next week. will be held, to discuss about maintaining the 2025 growth target in line with the target of around 5%.
Economists have previously said policymakers are likely to set a higher-than-usual deficit target of 3.5 to 4 percent of GDP. This will open the door for more central government borrowing to boost the economy.
