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Chinese economy continues cooling down, further measures for stimulus expected

Cinese economy is cooling down

The Chinese PMI PMI in December declined slightly in December, and points to a further cooling of the Chinese economy. Analysts feel that further rate cuts by the Chinese central bank possible.

Declining trend continues

The declining trend in which there is the development of China's economy seems to be continuing on, but decreases the speed. The purchasing managers PMI fell in December by 0.2 points, from 50.3 to 50.1, while he had dropped by 0.5 points in the previous month. Also, the index for new orders showed a weak decline, and fell in December to 50.4 points after 50.9 points in November. Analysts expect for 2015 growth of investment in the manufacturing sector in the single digits, after they have risen by 14% in 2014.

More stimulus measures expected

After the Chinese central bank had last November, for the first time in more than 2 years, the interest rates unexpectedly lowered, and loosened the requirements for bank lending, is expected in the first quarter of 2015 at the latest at the end of which, further measures to stimulate the economy are taken, the trend should continue. Positive, the good performance of the US economy could affect China's exports, and offset some of the decline in exports to the ailing European and Japanese markets.

 

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