Next week, China will publish its official PMIS, which, unlike other countries, are always published on the last day of the month instead of the first day of the following month. This will be the first important publication from the ‘Day of Liberation’, when US tariffs on China imports increased by a total of 125 percentage points in a wide range of products. There are already anecdotal reports of factor closures and drastic reduction of working hours. However, China’s high frequency data in particular paint a different picture (until now), says Volkmar Baur, CommerzBank’s currency analyst.
The CNY remains firm amid commercial tensions
“The production of steel, for example, remains very robust. In the first 20 days of April, the production of steel was about 10% higher than in the same period last year. Automobile sales are also on the way to a single high digit growth in April. According to the National Statistics Institute, there has also been no significant decrease in shipping traffic.”
“The situation is different in the housing market, where the daily sales data once again point to a significant slowdown in the impulse and, therefore, that there is no end to the crisis. However, it should also be said that the housing market has been in crisis for years and that this development probably does not have much to do with tariffs.”
“Alternative feeling indicators point to a slowdown, but not to a collapse. A similar picture of the official PMIS slightly.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
