China’s economy showed some fresh signs of life in June as the country gradually emerged from the covid-induced lockdowns but the recovery remains muted, Bloomberg Economics’ aggregate index of eight early indicators showed on Monday.

Key takeaways 

The overall gauge returned to the neutral level after deteriorating for two straight months.

Economic activity picked up in June after financial hub Shanghai lifted its lockdown, allowing businesses to restart and most residents to leave their homes.

That can be seen in a rebound in small business confidence, which started growing again after contracting for two months. 

Market reaction

Markets remain cautious amid a slump in the Chinese Industrial Profits and ongoing recession fears. USD/CNY, however, remains slightly offered near 6.6880 so far this Monday.