Oddbean

China's sluggish factories spurring hotter stimulus calls ========== China's manufacturing PMI fell to 49.1 in August 2024, marking four consecutive months of contraction; the economy is struggling with a property crisis and low consumer spending; Goldman Sachs economist Yuting Yang calls for more fiscal easing to meet a 5% growth target; trade tensions and local government debt limit Beijing's ability to stimulate demand; Xi Jinping's government is under pressure to shift from investment-led growth to domestic demand; the property crisis is causing consumer confidence to drop, leading to a projected slowdown in household consumption growth to 3-4% annually; China's trade surplus reached $858 billion, about 4.8% of GDP; economists warn that without significant reforms, long-term GDP growth may be limited to around 3%; signals from Xi and Premier Li Qiang indicate potential reforms to support private sector development and improve local government finances. #China #Economy #Manufacturing #Stimulus #Pmi #PropertyCrisis #ConsumerSpending #TradeSurplus #Reforms #XiJinping https://asiatimes.com/2024/09/chinas-sluggish-factories-spurring-hotter-stimulus-calls/