Beige Book: China's economic growth firmed in Q1, but outlook cloudy

According to the quarterly survey of thousands of Chinese firms by China Beige Book International (CBB), China’s economic activity remained strong in Q1 2018, but the outlook looked cloudy as two property and commodities markets showed signs of cooling, as cited by Reuters.

Key Findings:

 “A cloudy 2018 outlook certainly beats a downbeat one, but just a few months ago China’s strong finish to 2017 led most observers to believe that last year’s momentum would carry meaningfully through this year.

Still, the pace (of growth) at the end of 2018 will not match the halcyon days of 2017, even without a trade shock or any meaningful deleveraging.

The tougher question is what’s going to drive growth a year from now. Property and commodities both need an extended breather, and it’s difficult to imagine the surprising manufacturing performance of the last two years continuing much longer.”