Business Maverick: China’s economy strengthens in July despite housing, covid woes

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China’s economic recovery gained momentum in July as business activities resumed and confidence improved, despite disruptions from sporadic Covid outbreaks across the country.

Small business confidence improved on stronger expectations and better credit conditions, according to Standard Chartered Plc., which surveys more than 500 smaller firms each month. Overall production remained robust, while construction activity picked up thanks to policy support, the firm’s economists Hunter Chan and Ding Shuang wrote in a report.

The centre of China’s covid outbreak has shifted over the last month, with cases low in Shanghai and surrounding provinces but rising elsewhere, with some new lockdowns and restrictions being imposed. The eastern province of Anhui, Xi’an, home to the famed Terracotta Warriors, and manufacturing hub Wuxi all imposed curbs during the month.

The car market improved thanks to the relaxation of Covid restrictions and a government push to boost sales. In May, China halved the purchase tax on some low-emission passenger vehicles and the government is expediting a study aboutfor electric cars and examining ways of boosting car sales in rural areas.

However, that data showed that Chinese demand for imports continued to slow, indicating the lingering effects of the slowdown in the second quarter.flexible on the official growth target

 

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