2 Dec 2013
Flash: China's Nov PMI stable, but demand declines - Nomura
FXstreet.com (Barcelona) - After the November official PMI was unchanged at 51.4 from October, although higher than
market expectations, the Chinese economic team at Nomura maintains that GDP peaked in Q3 and will slow down in Q4.
Key Quotes
"The new orders sub-index dropped while output and finished goods inventory sub-indexes rose, which is indicative of a lower PMI in December."
"We maintain our view that GDP growth peaked at 7.8% y-o-y in Q3 and will slow to 7.5% in Q4 and 6.9% in 2014 amid policy tightening and structural reforms."
"We expect the government to cut its 2014 growth target to 7% at the Central Economic Working Conference to be held in the next week or two."
market expectations, the Chinese economic team at Nomura maintains that GDP peaked in Q3 and will slow down in Q4.
Key Quotes
"The new orders sub-index dropped while output and finished goods inventory sub-indexes rose, which is indicative of a lower PMI in December."
"We maintain our view that GDP growth peaked at 7.8% y-o-y in Q3 and will slow to 7.5% in Q4 and 6.9% in 2014 amid policy tightening and structural reforms."
"We expect the government to cut its 2014 growth target to 7% at the Central Economic Working Conference to be held in the next week or two."