Economics

Early China Data Shows Slowdown Biting Amid Credit Tightening

  • Four early indicators show cooling economic growth in May
  • Previous optimistic sentiment has faded: ZEW economist

Early Indicators Point to China Slowdown

Lock
This article is for subscribers only.

The first hints of China’s economic performance this month suggest that a slowdown in growth is taking hold, as policy makers beef up efforts to clamp down on financial risks.

The international-investor optimism that dominated in the earlier part of the year is now souring, as curbs on leverage push up the cost of domestic borrowing. Small and medium-sized companies are also reporting dented confidence, and sentiment among sales managers and in the steel market worsened.