A new report from China economy research firm China Beige Book argues that the country’s economy is actually doing better than official data would suggest, with key metrics such as retail sales and investment remaining strong despite a pessimistic outlook from the market.
“The retail sector may be seeing a turn higher, with profit and investment growth improving,” Bloomberg quotes the report as saying. According to the company’s research, weakness reflected in May’s economic figures come from earlier months and the back end of last year but going forward the sector “may already be emerging from the troubles Beijing is just now introducing publicly.”
The report makes a similar case for investment, which it says is underrepresented by official figures which neglect retail spending in favour of official fixed-asset investment.
On the topic of borrowing, Beige Book believes that corporate lending was higher in the second quarter compared to the same time last year and may continue upwards with lower interest rates.