China’s manufacturing and non-manufacturing PMIs softened further in Jul, UOB Group economist Ho Woei Chen notes.

Momentum in China’s economy is slowing

“Both the official manufacturing and non-manufacturing PMIs softened further in Jul, adding to evidence of slowing momentum in China’s economy. Deflationary pressure is still present in the price indicators.”

“While the Jul Politburo meeting pledged to roll out a batch of new measures to support the economy at an appropriate time and highlighted lifting consumption to expand domestic demand, there were no details.”

“Both monetary and fiscal policy support will need to be strengthened in 2H24. We forecast China’s GDP growth to moderate to 4.9% this year from 5.2% in 2023.”