China May Keep Trying to Spur Consumption Without Big Stimulus
- Policies will likely fall short of the aggressive steps needed
- A gap in demand will persist as Beijing searches for solution
Shoppers on Nanjing East Road in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s top leaders have signaled stronger stimulus to help fill a hole in consumer demand. That doesn’t mean Beijing will roll out a “bazooka” package just yet, or abandon its factory focus.
Senior officials last week endorsed their strongest pro-growth stance in a decade, indicating bigger government spending and more interest rate cuts. Boosting consumption was elevated to the top priority for only the second time in a decade, even before data released Monday showed retail spending unexpectedly slowing.