- China doesn’t need us anymore.
- Factory activity expanding
- Services and construction on 8 month rise
- Manufacturing purchasing managers index slipped slightly. Gauge of factory activity
- Manufacturing PMI stayed above 50%, This means that the economy is expanding.
- The expansion is attributed to robustness in industrial sector that is buoyed by stimulus
- New export orders are on the rise
- Services and construction activity is on the rise
- Lagging service sector index also rose slightly (lagging)
- 8 day holiday helped aid the increase in spending
- 4.9% expansion in GDP compared to last year
- Offset 6.8% contraction from the first quarter
- This data comes after a 4 day meeting from the senior leaders. They vowed to shift economy towards domestic consumption and build up the country’s technological self reliance
- They also came up with a 15 year plan to expand the GDP.
- The pandemic and trade issues have helped China see that they do not need the USA as much as they once did. If they can stay the course and put up with the growing pains, they can make some serious progress in the coming years.
- https://www.wsj.com/articles/chinas-factory-recovery-continues-as-service-sector-hits-seven-year-high-11604108614
