China's economy continues to show signs of weakness. Most recently, a prediction emerged regarding the economic recovery which appears to have stopped in September.

Data from the China Beige Book released on Friday (29/9/2023) showed that retail sales, prices, manufacturing production and loan growth were weaker than the previous month.

China Beige Book added that its findings in September were based on a survey of 1,330 companies, evenly split between private and state-owned companies. However, on average these are large companies and not small and medium companies.

In terms of corporate lending, there was a decline to "very low levels" due to loan rejections and an increase in average loan interest rates. This happened despite several steps by the People's Bank of China to reduce borrowing costs.

This setback will fuel concerns about weakening growth in the third quarter, increasing the risk of the country failing to achieve the 5% growth target set by the central government.

Economists currently still expect September data to remain relatively weak, with most data pointing to further stabilization in the slowdown.

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Source: CNBC International