Analysis by Bloomberg Economics points to an even weaker month for the Chinese economy despite a stepping-up of supportive measures from Beijing aimed at taming the slowdown.
“The early indicators show that economic conditions continue to weaken both on the domestic and external fronts,” said Bloomberg Chief Asia Economist Chang Shu. “Economic sentiment is very poor, particularly among small private firms. We expect policy support for the economy to broaden to all aspects of growth – exports, consumption and investment.”
The gauge used looks at the three-month weighted average of month-to-month changes of eight indicators based on business surveys or market prices.
Economists are anticipating the situation to get worse before it gets better for China, with much of the fallout from Washington’s tariffs still yet to take effect. The first official data for October, the manufacturing Purchasing Managers’ Index (PMI), will be released on Wednesday.