China gave an optimistic economic activity stabilization in May but faces a lot of challenges ahead, according to SCMP. A heavy level of risk has been created by high commodity prices, chip shortages, uncertainty of the yuan, and resurgence of coronavirus cases.
China faced a slight drop in the manufacturing sector in May as a result of factory closures following a seven day ‘golden week’ holiday at the start of the month.
After an activity decline in April came steadiness in May, increasing speculators expectations of Chinese economy peaking in the second quarter of the year.
Concerns of rising prices rose in May, with commodities reaching record highs before retreating.
Recoveries experienced in China’s service sector are now seen to consolidate even as the consumer markets heats up.
Analysts see Chinese consumers starting to save for the long holidays in October that could weigh on demand already suppressed by limited international travel into the country.
USDCNY is up 0.06%
