China’s Precarious Economy Signals More Support Is Needed
- Weak confidence and a property crisis are challenging growth
- Beijing may cut rates and bank reserve requirements again: BE
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China’s factories look to have stabilized for now, though the recovery has been far from swift and the momentum for growth may be in trouble without more policy support.
An official gauge of manufacturing activity returned to expansion in September for the first time in six months, a sign that stimulus may be taking root. But it’s not all smooth sailing: That index just barely cleared the dividing line between contraction and growth from the prior month, while a private gauge of activity in the sector underperformed and suggested the recovery isn’t on solid ground just yet.