Caixin: Chinese economy performed better in Q4 than in the previous 3 quarters

Following the release of a tad better Chinese services PMI data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at Caixin, came out on the wires and expressed his take on the Chinese data.

Key Headlines:

The headline Caixin China General Services PMI was up 0.3 points from a month ago to 53.4 in December.

The sub-indices of new orders, input costs and prices charged all went up.

The Caixin China Composite Output Index came in at 53.5 in December, up 0.6 points from November and the highest level since 2013

Manufacturing and services both expanded in December, showing recovery in the economy continued. The Chinese economy performed better in the fourth quarter than in the previous three quarters. It is out of the question the government's full year growth target will be reached.

However, uncertainties remain regarding whether the intrinsic drivers for growth next year can effectively offset the negative impact from gradually tightening property policies and likely slowing expansion in fiscal and monetary policies. We have to stay vigilant over the downward pressures on the economy.