2 May 2014
China not yet at a turning point - Nomura
FXStreet (Bali) - On the back of a slight miss in the official Chinese PMI on Thursday, up seasonally to 50.4 in April from 50.5 expected and 50.3 in March, Nomura Economists believe the economy is not yet at a turning point.
Key Quotes
"The output sub-index weakened despite an improved new orders sub-index, likely indicating firms still lack confidence in facing significant uncertainty down the road."
"We continue to expect growth to slow to 7.1% y-o-y in Q2 from 7.4% in Q1, with risks to the downside as leading indicators in the property sector fell sharply in Q1."
"We reiterate our view that both monetary and fiscal policy will be loosened in Q2 and we continue to expect 50bp cuts in the reserve requirement ratio in Q2 and Q3."
Key Quotes
"The output sub-index weakened despite an improved new orders sub-index, likely indicating firms still lack confidence in facing significant uncertainty down the road."
"We continue to expect growth to slow to 7.1% y-o-y in Q2 from 7.4% in Q1, with risks to the downside as leading indicators in the property sector fell sharply in Q1."
"We reiterate our view that both monetary and fiscal policy will be loosened in Q2 and we continue to expect 50bp cuts in the reserve requirement ratio in Q2 and Q3."