PMI points to weaker service conditions
Updated: 2014-02-08 00:31
By Chen Jia (China Daily)
|
|||||||||||
Wang Tao, chief economist in China at UBS AG, characterized the current economic situation as "a seemingly soft start" for 2014.
"We anticipate the January data to show that economic momentum may have softened slightly, due in part to Chinese New Year distortions," she said.
Wang said China's relatively warm winter likely helped keep food prices and consumer inflation subdued and power use weaker in January.
Zhu Haibin, chief economist in China at JPMorgan Chase & Co, said: "In the near term, the volatility in the financial market adds to the concern about economic slowing.
"The first thing to watch for whether the upward drift in interbank rates and higher volatility will be passed through to ultimate borrowers in the business sector."
He mentioned other factors that will constrain growth momentum in the coming months, including lingering manufacturing overcapacity, tighter local government financing conditions and a slowing in the housing market.
However, the chief China economist at the Royal Bank of Scotland, Louis Kuijs, said there is no need to become "overly concerned" about growth in China.
"The government has the policy space it needs to ensure its bottom line on growth while retaining financial stability.
"We will also pay attention to how policymakers balance the need to rein in credit growth and the excesses in shadow banking with the desire to keep GDP growth above the bottom line of about 7 percent," Kuijs said.
Related Stories
Threats to Chinese manufacturing exaggerated 2014-02-07 17:27
China's Jan services PMI falls to 50.7: HSBC 2014-02-07 14:24
China's PMI slides to a 6-month low 2014-02-04 12:02
Service sector growth hits lowest level since 2008 2014-02-04 04:20
Today's Top News
Xi attends Sochi Olympic opening ceremony
Suspected hijacker seized
China changing the way it drinks
Senate confirms Baucus as ambassador to China
More Chinese enjoy festival overseas
Shanghai kindergartens to promote local dialect
Faulty Chinese part forces major Aston Martin recall
Daily stress taking toll on life at home: experts
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Sochi Olympics |
Bittersweet Spring Festival |
Find provides grave paws for thought |
Smog descends on the 'two sessions' agendas |
Entertainment: Console ban? |
Majoring in anti-money laundering |