China’s Contradictory Data Fuels Debate Over Need for Stimulus
- Inflation weakened in March, yet credit and exports surged
- Some economists say more support needed to spur recovery
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China’s recent economic indicators are providing contradictory signals about the recovery, raising doubts about the growth outlook and fueling debate over whether Beijing needs to step up its stimulus.
March data so far showed a surge in the services sector as consumers spend more on travel and restaurants now that Covid waves have eased. Yet, at the same time, inflation weakened in the month, pointing to subdued domestic demand.