China’s nascent rebound from the historic contraction in the first quarter is already losing pace in April, amid signs of a global recession and still weak domestic demand.
While March data showed a pickup from the slump in the first two months of the year, the earliest indicators for this month show domestic demand as still very weak and companies remaining cautious The aggregate index combining eight indicators tracked by Bloomberg was therefore broadly unchanged this month. While the fact that it didn’t deteriorate signals a possible bottoming-out of the economy as the nation re-opens factories and encourages the public to return to shopping and dining out, the overall picture is still downbeat. Small business confidence rose slightly after March’s strong rebound, but the pace of increase slowed, and a gauge of expectations dropped after gaining the previous month.