Production Expectations Leading the Way Lower in China
Source: Bloomberg, Unigestion, as of 15.10.2021 (Change since June 2021)
Due to its size and place in global trade, China is the largest consumer of commodities. It is therefore natural to see its economy affected the most by the significant rise in the price of energy and industrial metals. As a result, production levels have fallen due to power shortages and power control. Industrial production fell in September, dragged lower by a slowdown in energy intensive sectors. As our chart on the components of Chinese growth shows, the Production Expectations component of our Growth Nowcaster has fallen the most, increasing the bottleneck effects.
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