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Leading Economic Index for China increases in August

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Leading Economic Index for China increases in August

But signs of weakness persist.

The Conference Board Leading Economic Index for China increased 1.0% in August, following a 0.9% increase in July and a 0.5% increase in June. Total loans issued by financial institutions and floor space started made the largest positive contributions to the index, while the consumer expectations index, the PMI new export orders index, and the (inverted) PMI supplier delivery index declined in August.

The LEI's six-month growth rate has decelerated, pointing to weakening economic conditions in the months ahead."

"The August gain in the LEI for China stemmed primarily from bank loans and better performance in housing starts," said Andrew Polk, resident economist at The Conference Board China Center in Beijing. "However, compared to a year ago, housing starts remain deeply entrenched in contractionary territory, suggesting no real improvement in the property market. In addition, the LEI's six-month growth rate has decelerated, pointing to weakening economic conditions in the months ahead."

The Conference Board Coincident Economic Index for China, which measures current economic activity, increased 0.8% in August, following a 1.1% increase in July and a 0.2% increase in June. All five components contributed positively to the index in August.

 

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