China’s economy isn’t as bad as you think

According to the “China Beige Book” – which is published by CBB International and modeled on the survey compiled by the Federal Reserve on the U.S. economy – “Perceptions of China may be more thoroughly divorced from facts. Global sentiment on China has veered sharply bearish… too bearish. While we have long cautioned clients against relying on rosy official views of the Chinese economy, we believe sentiment has swung substantially too far in the opposite direction.” The report is based on surveys with the executives of more than 2100 companies in China and shows that the services sector, which account for more than half of China’s economy has improved revenues, pricing, volumes and capital expenditure. The report also found that job growth inched up, company profits improved, and wage growth moderated mildly. CBB began the series in mid-2012, when its inaugural survey indicated a pick-up in growth from early that year, a forecast later borne out. (VIEW LINK)