The U.S. company behind a survey that showed China’s economy is improving stuck to its findings after the nation’s second interest-rate cut in a month signaled government concern over the slowdown.
“This and more easing steps should absolutely be expected going forward,” Leland R. Miller, president of New York-based CBB International LLC, producer of the China Beige Book, said today in an e-mail. “Our conclusion was that the economy continues to strengthen from a period of significant weakness; by no means, however, is the economy in an overall strong position.”
The China Beige Book, named and modeled after the U.S. Federal Reserve’s anecdotal report, compiled data from about 2,000 interviews of executives and bankers in the world’s second-largest economy from May 14 to June 8. The company said earlier this week that official statistics may lag its data by one to three months.
The report found retail sales and manufacturing strengthened in the second quarter while property sales increased and shortages of unskilled labor failed to abate, according to a summary CBB provided to Bloomberg News before the People’s Bank of China yesterday lowered benchmark lending and deposit rates.
CBB said this week that its survey focuses on “tracking evolving on-the-ground sentiment as it changes from quarter to quarter.”
--Scott Lanman. With assistance from Kevin Hamlin in Beijing. Editors: Scott Lanman, Paul Panckhurst
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