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China’s Strong Recovery Shows Signs of Softening as Costs Surge

  • Early economic indicators point to weaker business sentiment
  • Export demand remains strong, while car, property sales ease
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NTAM's Sturkenboom on China's Economic Recovery

China’s strong economic momentum eased slightly in May, as surging raw material prices squeezed profits, businesses turned more cautious and property and car sales underperformed.

That’s the outlook of an aggregate index combining eight early indicators tracked by Bloomberg, which slipped from April but remained in expansionary territory, underpinned by solid export demand.